Growth effects of age-related productivity differentials in an ageing society: A simulation study for Austria

Arbeitspapier

We integrate age specific productivity differentials into a long-run neoclassical growth model for the Austrian economy with a highly disaggregated labor supply structure. We assume two life time productivity profiles reflecting either small or large hump-shaped productivity differentials and compute an average labor productivity index using three different aggregation functions: linear, Cobb-Douglas, and a nested Constant Elasticity of Substitution (CES). Model simulations with age specific productivity differentials are compared to a base scenario with uniform productivity over age groups. Depending on the aggregation function, the simulation results show only negligible or small negative effects on output and other macroeconomic key variables.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Reihe Ökonomie / Economics Series ; No. 179

Classification and Topics

• Classification: Wirtschaft ; One, Two, and Multisector Growth Models ; Demographic Trends, Macroeconomic Effects, and Forecasts ; General Aggregative Models: Forecasting and Simulation: Models and Applications
• Subject: age specific productivity ; demographic change ; model simulation ; Sparen ; Wirtschaftswachstum ; Neoklassik ; Simulation ; Österreich ; Alternde Bevölkerung

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hofer, Helmut ; Url, Thomas
• Event: Veröffentlichung
• (who): Institute for Advanced Studies (IHS)
• (where): Vienna
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/72304
• Last update: 10.03.2025, 11:41 AM CET