Ageing and the Relative Price of Nontradeables

Arbeitspapier

In this paper we identify the effects of ageing on the relative price of nontradeables versus tradeables. We consider two cases. In a first specification, age effects only account for short-run dynamics. An alternative case allows for permanent age effects. Estimating the respective cases by means of an ECM on a panel of OECD countries we find significant effects of demographic composition on the relative prices, even after correcting for the standard explanatory variables. Simulations based on population projections of the UN show that ageing might substantially contribute to inflationary pressures in the near future.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 07-064/2

Classification and Topics

• Classification: Wirtschaft ; Open Economy Macroeconomics ; Price Level; Inflation; Deflation ; Demographic Trends, Macroeconomic Effects, and Forecasts
• Subject: relative price of nontradeables ; age-specific effects ; productivity differentials ; Alternde Bevölkerung ; Relativer Preis ; Nicht-handelbare Güter ; Produktivität ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bettendorf, Leon ; Dewachter, Hans
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/86454
• Last update: 10.03.2025, 11:41 AM CET