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Macroeconomics of aging

Author

Listed:
  • Betti, Thierry
  • Lefebvre, Mathieu
  • Pestieau, Pierre

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

Abstract
The purpose of this chapter is to analyze the effects that population aging, and specifically the increase in longevity, may have on capital accumulation and the welfare of society. Throughout our analysis, we use as back bone a two-period overlapping generation model with variable longevity, distinguishing between the case when longevity increase is exogenous and the case when it is endogenous, namely partially the responsibility of individuals or governments. In each section, we first provide the result arising from our central model and then review the relevant literature. Keywords: Longevity, OLG models, Capital accumulation.

Suggested Citation

  • Betti, Thierry & Lefebvre, Mathieu & Pestieau, Pierre, 2023. "Macroeconomics of aging," LIDAM Discussion Papers CORE 2023002, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2023002
    as

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    References listed on IDEAS

    as
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    5. Dedry, Antoine & Onder, Harun & Pestieau, Pierre, 2017. "Aging, social security design, and capital accumulation," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 145-155.
    6. Amy Finkelstein & Erzo F. P. Luttmer & Matthew J. Notowidigdo, 2009. "Approaches to Estimating the Health State Dependence of the Utility Function," American Economic Review, American Economic Association, vol. 99(2), pages 116-121, May.
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    11. Giam Cipriani, 2014. "Population aging and PAYG pensions in the OLG model," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(1), pages 251-256, January.
    12. Tomas J. Philipson & Gary S. Becker, 1998. "Old-Age Longevity and Mortality-Contingent Claims," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 551-573, June.
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    17. Nishimura, Yukihiro & Pestieau, Pierre & Ponthiere, Gregory, 2018. "Education choices, longevity and optimal policy in a Ben-Porath economy," Mathematical Social Sciences, Elsevier, vol. 94(C), pages 65-81.
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    25. CREMER, Helmuth & PESTIEAU, Pierre & PONTHIERE, Grégory, 2012. "The economics of long-term care: a survey," LIDAM Discussion Papers CORE 2012030, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Longevity ; OLG models ; Capital accumulation;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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