Population Ageing and Pension Reform in a Small Open Economy with Non-Traded Goods
In this paper we study the implications of population ageing in an economy with a sizeable non-traded goods sector. To this effect a highly stylized micro-founded macro model is constructed in which the age structure of the population plays a non-trivial role. The model distinguishes separate birth and death probabilities (thus allowing for net population change), allows for age-dependent labour productivity (thus mimicing life-cycle saving), and includes a rudimentary pension system (thus allowing for intergenerational redistribution). The model is used to analytically study demographic and pension shocks.
|Keywords||demographic shocks, fertility rate, non-traded goods, overlapping generations, pension reforms|
Bettendorf, L.J.H., & Heijdra, B.J.. (2004). Population Ageing and Pension Reform in a Small Open Economy with Non-Traded Goods (No. TI 05-021/2). Retrieved from http://hdl.handle.net/1765/6597