Effects of Long-Run Demographic Changes in a Multi-Country Model

December 1, 1991

Preview Citation

Format: Chicago

Paul R Masson. Effects of Long-Run Demographic Changes in a Multi-Country Model, (USA: International Monetary Fund, 1991) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The macroeconomic effects of population aging are explored using data for the G-7 countries and Australia. The link between changes in birth and mortality rates on the one hand, and dependency ratios on the other, is first discussed, then empirical evidence on the effects of dependency ratios on net foreign asset positions and on consumption is presented. Simulations of changes in dependency ratios are then reported, using demographic projections to the year 2025. Finally, the plausibility of the implied changes in net foreign asset positions is discussed.

Subject: Aging, Balance of payments, Consumption, Current account balance, Demographic change, External position, Foreign assets, National accounts, Population and demographics

Keywords: Age structure, Aging, Consumption, Consumption equation, Current account balance, Death rate assumption, Demographic change, Dependency ratio, Exchange rate, Foreign assets, Global, Liability ratio, Net effect, Open economy, Wealth ratio, WP

Publication Details

Pages:

34
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1991/123
Stock No:

WPIEA1231991
ISBN:

9781451854534
ISSN:

1018-5941

Notes

The macroeconomic effects of population aging are explored using data for the G-7 countries and Australia.

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