Population aging and endogenous economic growth

Konferenzbeitrag

This article investigates the consequences of population aging for long-run economic growth perspectives. We introduce age specific heterogeneity of households into a model of endogenous technological change. We show that the model incorporates two standard specifications of horizontal innovation as special cases: endogenous growth models with scale effects and semi-endogenous growth models without scale effects. The introduction of an age structured population implies that aggregate laws of motion for capital and consumption have to be obtained by integrating over different cohorts. It is analytically shown that these laws of motion depend on the underlying demographic assumptions. In particular, we find that increases in longevity have positive effects on per capita output growth. This holds in the steady state of endogenous as well as semi-endogenous growth models. In the latter case, the positive dependence can also be shown for the equilibrium growth rate during transition to the steady state.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Growth and Demography ; No. E5-V3

Classification and Topics

• Classification: Wirtschaft ; One, Two, and Multisector Growth Models ; Demographic Economics: General ; Optimization Techniques; Programming Models; Dynamic Analysis
• Subject: population aging ; endogenous technological change ; long-run economic growth

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Prettner, Klaus
• Event: Veröffentlichung
• (who): Verein für Socialpolitik
• (where): Frankfurt a. M.
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/37320
• Last update: 10.03.2025, 11:44 AM CET