Quantifying the effects of the demographic transition in developing economies

Orazio P. Attanasio, Sagiri Kitao, Giovanni L. Violante

    Research output: Contribution to journalArticlepeer-review

    Abstract

    This paper evaluates quantitatively the impact of the observed demographic transition on aggregate variables (factor prices, saving rate, output growth), and on inter-generational welfare in developing economies. It does so by developing a large-scale two-region equilibrium overlapping generations model calibrated to the North (more developed countries) and the South (less developed countries). The paper highlights that the effects of the demographic trends for less developed regions may depend on the degree of international capital mobility and on the extent to which the large Pay-As-You-Go systems in place in the more developed world will be reformed.

    Original languageEnglish (US)
    JournalAdvances in Macroeconomics
    Volume6
    Issue number1
    DOIs
    StatePublished - 2006

    Keywords

    • Capital flows
    • Demographic transition
    • Developing economies
    • Growth
    • Social security
    • Welfare

    ASJC Scopus subject areas

    • General Economics, Econometrics and Finance

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