Asymptotic Age Structures and Intergenerational Trade
Paris School of Economics (PSE)
January 10, 2011
Metroeconomica, Vol. 62, No. 1, pp. 175-217, 2011
While Lotka and Lopez proposed conditions on (exogenous) fertility and mortality laws under which populations with distinct initial age structures exhibit the same asymptotic age structure, this paper re-examines age-structure stabilization and convergence by considering a three-period overlapping generations model where fertility and longevity are determined by human capital accumulation and by intergenerational trade. It is shown that the age structure must converge asymptotically towards a stable structure, and that populations with distinct initial age structures end up with the same long-run age structure when fertility and mortality laws are converging, which requires converging intergenerational terms of trade.
Number of Pages in PDF File: 43Accepted Paper Series
Date posted: January 12, 2011
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