Arbeitspapier
Over-aging: Are present human populations too old?
This paper investigates the problem of an \optimum population" concerning age structures in a 3-period OLG-model with endogenous fertility and longevity. The first-best solution for a number-dampened total social welfare function, including Millian and Benthamite utilitarianism as two extreme cases, identifies the optimal age structure, generally failed in the laissez-faire economy. Individuals over-invest in health expenditures and choose a non-optimal number of offspring. A calibration exercise for 80 countries emphasizes that mean ages in the optimal solution with the highest feasible individual utility exceed the observed in all countries, especially due to a very low first-best number of children. Introducing a preference for the population stock in the social welfare function increases fertility, but reduces individual utility, in the first-best solution. Optimal mean age shrinks and an over-aging of the laissez-faire economy becomes more likely. To decentralize first-best solutions health expenditures are taxed, whereas children are either taxed or subsided.
- Language
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Englisch
- Bibliographic citation
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Series: Thünen-Series of Applied Economic Theory - Working Paper ; No. 137
- Classification
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Wirtschaft
Taxation, Subsidies, and Revenue: General
Health: General
Demographic Economics: Public Policy
- Subject
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endogenous fertility
adult mortality
optimal age structure
over-aging
optimal taxation
- Event
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Geistige Schöpfung
- (who)
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Stelter, Robert
- Event
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Veröffentlichung
- (who)
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Universität Rostock, Institut für Volkswirtschaftslehre
- (where)
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Rostock
- (when)
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2014
- Handle
- Last update
-
10.03.2025, 11:46 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Stelter, Robert
- Universität Rostock, Institut für Volkswirtschaftslehre
Time of origin
- 2014
Other Objects (12)
Over-aging - Are present human populations too old?
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Over-aging - Are present human populations too old?
Too old to work, too young to retire?
Too old to work, too young to retire?
Too old to work, too young to retire?
Too Old to Work, Too Young to Retire?
Too old to work, too young to retire?
Too Old to Work, Too Young to Retire?
Too old to work, too young to retire?
Too old to work, too young to retire?
Too old to work, too young to retire?
Too old to work, too young to retire?
TOO OLD 2 Die YOUNG
Over-aging - Are present human populations too old?
Too old to work, too young to retire?
Too old to work, too young to retire?
Too old to work, too young to retire?
Too Old to Work, Too Young to Retire?
Too old to work, too young to retire?
Too Old to Work, Too Young to Retire?
Too old to work, too young to retire?
Too old to work, too young to retire?
Too old to work, too young to retire?
Too old to work, too young to retire?