Debt, Deficits, and Age-Specific Mortality

Author/Editor:

Hamid Faruqee

Publication Date:

February 1, 2002

Electronic Access:

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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:

This paper develops an overlapping agents model with age-specific mortality rates. The analytical framework also nests Blanchard's (1985) "perpetual youth" model as a special, though perhaps not realistic, case. With age specific mortality rates, youth is "fleeting." Using standard hyperbolic functions, the model with fleeting youth is able to closely replicate the empirical relation between age and mortality. The comparative implications for deficit finance are also examined and age-specific mortality is shown to alter the non-Ricardian properties of the model.

Series:

Working Paper No. 2002/019

Subject:

Aging Consumption Discount rates Health Public debt

English

Publication Date:

February 1, 2002

ISBN/ISSN:

9781451843750/1018-5941

Stock No:

WPIEA0192002

Pages:

20

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