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Population structure and consumption growth: Evidence from National Transfer Accounts

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  • Kuhn, Michael
  • Prettner, Klaus

Abstract

We assess the impact of population structure on economic growth. Following recent research, we focus on the generational turnover as a key driver of consumption growth. We characterize the impact of the average birth and death rates on the generational turnover, depending on the age-profile of consumption and on the extent of annuity market imperfection. Using recent data from the National Transfer Accounts on consumption profiles for a number of countries, we assess in a comparative way the sign and magnitude of generational turnover and its impact on consumption growth. We find considerable cross-country variation and trace it back to differences in demographic rates and in the consumption structure.

Suggested Citation

  • Kuhn, Michael & Prettner, Klaus, 2015. "Population structure and consumption growth: Evidence from National Transfer Accounts," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 01/2015, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).
  • Handle: RePEc:zbw:tuweco:012015
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    References listed on IDEAS

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    1. Klaus Prettner, 2013. "Population aging and endogenous economic growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 811-834, April.
    2. Hippolyte d'Albis & Emmanuelle Augeraud-véron, 2009. "Competitive Growth In A Life-Cycle Model: Existence And Dynamics," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(2), pages 459-484, May.
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    Cited by:

    1. David E. Bloom & Michael Kuhn & Klaus Prettner, 2016. "Africa’s Prospects for Enjoying a Demographic Dividend," VID Working Papers 1604, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
    2. Frankovic, Ivan & Kuhn, Michael & Wrzaczek, Stefan, 2016. "Medical care within an OLG economy with realistic demography," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 02/2016, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).

    More about this item

    Keywords

    demography; economic growth; generational turnover; National Transfer Accounts;

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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