Population Ageing and Pension Reform in a Small Open Economy with Non-Traded Goods
April 2004
Research Paper
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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
Classifications using
Journal of Economic Literature (JEL) Classification System
- D91 : Intertemporal Consumer Choice; Life Cycle Models and Saving
- F41 : Open Economy Macroeconomics
- E13 : Neoclassical
- H55 : Social Security and Public Pensions
Automatically Extracted Terms
- pension
- capital
- model
- effect
- consumption
- non-traded
- sector
- population
- generation
- pension reform
- equation
- increase
- growth
- labour
- shock
- economy
- reform
- household
- system
- wealth
