TY - JOUR
T1 - Capital accumulation and the sources of demographic change
AU - Mierau, Jochen O.
AU - Turnovsky, Stephen J.
N1 - Funding Information:
Research for this paper was begun while Mierau was visiting the University of Washington. Turnovsky’s research was supported in part by the Castor Endowment at the University of Washington. The paper has benefited from seminar presentations at Boaziçi University, the University of Louvain-la-Neuve, University of Leicester, Victoria University of Wellington, and ETH Zürich; as well as at the 2011 Conference of the Association of Public Economic Theory in Bloomington, IN, in the 10th Journées Louis-André Gérard-Varet Conference on Public Economics in Marseille, France, June 2011; and the 2012 Conference of the Society of the Advancement of Economic Theory in Brisbane, Australia. We gratefully acknowledge the constructive comments by Hippolyte d’Albis, Antoine Bommier, Raouf Boucekkine, Ben Heijdra, Paul Lau, Jenny Ligthart, and Ward Romp; two referees and the editor, Alessandro Cigno, on earlier drafts; as well as helpful discussions with Viola Angelini, Neil Bruce, and Wen-Jen Tsay.
PY - 2014/7
Y1 - 2014/7
N2 - We develop a neoclassical growth model having a realistic demographic structure. We identify the critical channel of impact to be the intertemporal consumption allocation decision through the "generational turnover term". Expressing the aggregate dynamics as a generalization of the conventional neoclassical growth model provides important insights, enabling us to view in a unified way how alternative demographic structures impinge on the macrodynamic equilibrium. Using an approximation to the generational turnover term, we are able to characterize both the steady state and the local transitional dynamics. Through numerical simulations, we analyze the steady state as well as the transitional effects of structural and demographic changes.
AB - We develop a neoclassical growth model having a realistic demographic structure. We identify the critical channel of impact to be the intertemporal consumption allocation decision through the "generational turnover term". Expressing the aggregate dynamics as a generalization of the conventional neoclassical growth model provides important insights, enabling us to view in a unified way how alternative demographic structures impinge on the macrodynamic equilibrium. Using an approximation to the generational turnover term, we are able to characterize both the steady state and the local transitional dynamics. Through numerical simulations, we analyze the steady state as well as the transitional effects of structural and demographic changes.
KW - Demography
KW - Growth
KW - Overlapping generations
UR - http://www.scopus.com/inward/record.url?scp=84899928022&partnerID=8YFLogxK
U2 - 10.1007/s00148-013-0479-3
DO - 10.1007/s00148-013-0479-3
M3 - Article
VL - 27
SP - 857
EP - 894
JO - Journal of Population Economics
JF - Journal of Population Economics
IS - 3
ER -