Human capital accumulation and the macroeconomy in an ageing society

Arbeitspapier

How do population ageing shocks affect the long-run macroeconomic performance of an economy? To answer this question we build a general equilibrium overlapping generations model of a closed economy featuring endogenous factor prices. Finitely-lived individuals are endowed with perfect foresight and make optimal choices over the life cycle. In addition to selecting age profiles for consumption and the hours of time supplied to the labour market, they also choose their schooling level and retirement age. Human capital is accumulated as a result of work experience, the extent of which is determined by the intensity of labour supply. As the agent gets older, biological deterioration sets in and human capital depreciates at an increasing rate. This ultimately prompts the agent to withdraw from the labour market. The microeconomic and macroeconomic effects of three ageing shocks are studied, namely a biological longevity boost, a comprehensive longevity boost, and a baby bust. Robustness checks are performed by allowing for capital market imperfections and indivisibility of labour supply.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 4046

Klassifikation und Themen

• Klassifikation: Wirtschaft ; General Aggregative Models: General ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Economic Growth and Aggregate Productivity: General ; Open Economy Macroeconomics ; Demographic Trends, Macroeconomic Effects, and Forecasts
• Thema: human capital ; education ; experience effects ; borrowing constraints ; indivisible labour ; retirement ; overlapping generations ; demography ; Alternde Bevölkerung ; Humankapital ; Berufserfahrung ; Neue Wachstumstheorie ; Overlapping Generations ; Kleines-offenes-Land ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Heijdra, Ben J. ; Reijnders, Laurie S. M.
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2012

Weitere Informationen

• Handle: http://hdl.handle.net/10419/69583
• Letzte Aktualisierung: 20.09.2024, 08:23 MESZ