Demographic Dynamics and the Empirics of Economic Growth

Author/Editor:

Michael Sarel

Publication Date:

December 1, 1994

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 examines the effects of demographic dynamics on the measured rates of economic growth. First, it develops a model of production with labor productivity that varies with age. Second, it uses macroeconomic and demographic data to estimate the relative productivity of different age groups. Third, it constructs a panel database of effective labor supply in order to reflect the changing age-structure of the population. Fourth, it decomposes the historical measured growth rates into effects of demographic dynamics and into “real” growth rates, net of demographic effects.

Series:

Working Paper No. 1994/143

Subject:

Aging Expenditure Labor Labor supply Population and demographics Production Productivity Public expenditure review

Notes:

Also published in Staff Papers, Vol. 42, No. 2, June 1995.

English

Publication Date:

December 1, 1994

ISBN/ISSN:

9781451926880/1018-5941

Stock No:

WPIEA1431994

Pages:

22

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