Ageing, government budgets, retirement, and growth

Research output: Contribution to journal › Journal article › Research › peer-review

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Ageing, government budgets, retirement, and growth. / Gonzalez Eiras, Martin; Niepelt, Dirk.

In: European Economic Review, Vol. 56, No. 1, 01.2012, p. 97-115.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Gonzalez Eiras, M & Niepelt, D 2012, 'Ageing, government budgets, retirement, and growth', European Economic Review, vol. 56, no. 1, pp. 97-115.

APA

Gonzalez Eiras, M., & Niepelt, D. (2012). Ageing, government budgets, retirement, and growth. European Economic Review, 56(1), 97-115.

Vancouver

Gonzalez Eiras M, Niepelt D. Ageing, government budgets, retirement, and growth. European Economic Review. 2012 Jan;56(1):97-115.

Author

Gonzalez Eiras, Martin ; Niepelt, Dirk. / Ageing, government budgets, retirement, and growth. In: European Economic Review. 2012 ; Vol. 56, No. 1. pp. 97-115.

Bibtex

@article{2284bdb92cf44985b3d56a1635685410,
title = "Ageing, government budgets, retirement, and growth",
abstract = "We analyze the short and long run effects of demographic ageing - increased longevity and reduced fertility - on per-capita growth. The OLG model captures direct effects, working through adjustments in the savings rate, labor supply, and capital deepening, and indirect effects, working through changes of taxes, government spending components and the retirement age in politico-economic equilibrium. Growth is driven by capital accumulation and productivity increases fueled by public investment. The closed-form solutions of the model predict taxation and the retirement age in OECD economies to increase in response to demographic ageing and per-capita growth to accelerate. If the retirement age were held constant, the growth rate in politico-economic equilibrium would essentially remain unchanged, due to a surge of social security transfers and crowding out of public investment.",
keywords = "Faculty of Social Sciences, ageing, government budgets, retirement , growth",
author = "{Gonzalez Eiras}, Martin and Dirk Niepelt",
note = "JEL classification: E62; H5; J26",
year = "2012",
month = jan,
language = "English",
volume = "56",
pages = "97--115",
journal = "European Economic Review",
issn = "0014-2921",
publisher = "Elsevier",
number = "1",

}

RIS

TY - JOUR

T1 - Ageing, government budgets, retirement, and growth

AU - Gonzalez Eiras, Martin

AU - Niepelt, Dirk

N1 - JEL classification: E62; H5; J26

PY - 2012/1

Y1 - 2012/1

N2 - We analyze the short and long run effects of demographic ageing - increased longevity and reduced fertility - on per-capita growth. The OLG model captures direct effects, working through adjustments in the savings rate, labor supply, and capital deepening, and indirect effects, working through changes of taxes, government spending components and the retirement age in politico-economic equilibrium. Growth is driven by capital accumulation and productivity increases fueled by public investment. The closed-form solutions of the model predict taxation and the retirement age in OECD economies to increase in response to demographic ageing and per-capita growth to accelerate. If the retirement age were held constant, the growth rate in politico-economic equilibrium would essentially remain unchanged, due to a surge of social security transfers and crowding out of public investment.

AB - We analyze the short and long run effects of demographic ageing - increased longevity and reduced fertility - on per-capita growth. The OLG model captures direct effects, working through adjustments in the savings rate, labor supply, and capital deepening, and indirect effects, working through changes of taxes, government spending components and the retirement age in politico-economic equilibrium. Growth is driven by capital accumulation and productivity increases fueled by public investment. The closed-form solutions of the model predict taxation and the retirement age in OECD economies to increase in response to demographic ageing and per-capita growth to accelerate. If the retirement age were held constant, the growth rate in politico-economic equilibrium would essentially remain unchanged, due to a surge of social security transfers and crowding out of public investment.

KW - Faculty of Social Sciences

KW - ageing

KW - government budgets

KW - retirement

KW - growth

M3 - Journal article

VL - 56

SP - 97

EP - 115

JO - European Economic Review

JF - European Economic Review

SN - 0014-2921

IS - 1

ER -

ID: 46842647