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

Author/Editor:

Paul R Masson

Publication Date:

December 1, 1991

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.

Series:

Working Paper No. 1991/123

Subject:

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

Notes:

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

English

Publication Date:

December 1, 1991

ISBN/ISSN:

9781451854534/1018-5941

Stock No:

WPIEA1231991

Pages:

34

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