Economic Aging and Demographic Change

University of St. Gallen Department of Economics Discussion Paper No. 2007-35

40 Pages Posted: 18 Oct 2007

See all articles by Dominik Grafenhofer

Dominik Grafenhofer

Institute for Advanced Studies (IHS); Johannes Kepler University Linz

Christian Jaag

Swiss Economics; University of St. Gallen - Institute of Public Finance and Fiscal Law

Christian Keuschnigg

University of St. Gallen – Department of Economics (FGN-HSG); CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR)

Mirela Keuschnigg

University of St. Gallen - SEPS: Economics and Political Sciences

Date Written: September 2007

Abstract

This paper presents a generalized model of overlapping generations with economic aging of households. Economic age is defined as a set of personal attributes such as earnings potential and tastes that are characteristic of a person's position in the life-cycle. We separate the concepts of economic age and time since birth in assuming only a small number of different states of age. Agents sharing the same economic characteristics are aggregated analytically to a low number of age groups. The model thus allows for a very parsimonious approximation of life-cycle differences in earnings, wealth and consumption. As an illustration, we quantitatively apply the model to study the impact of demographic change.

Keywords: Overlapping Generations, Aging, Demographic Change, Life-cycle

JEL Classification: D58, D91, H55, J21

Suggested Citation

Grafenhofer, Dominik and Jaag, Christian Yvo and Keuschnigg, Christian and Keuschnigg, Mirela, Economic Aging and Demographic Change (September 2007). University of St. Gallen Department of Economics Discussion Paper No. 2007-35. Available at SSRN: https://ssrn.com/abstract=1021168 or http://dx.doi.org/10.2139/ssrn.1021168

Dominik Grafenhofer

Institute for Advanced Studies (IHS) ( email )

Josefstädter Straße 39
1080 Vienna
Austria
++43 1 59991 309 (Phone)
++43 1 59991 555 (Fax)

Johannes Kepler University Linz ( email )

Altenberger Str. 69
A-4040 Linz
Austria

Christian Yvo Jaag

Swiss Economics ( email )

Stampfenbachstr. 142
Zurich, CH-8006
Switzerland

University of St. Gallen - Institute of Public Finance and Fiscal Law ( email )

Rosenbergstrasse 51
St. Gallen, St. Gallen CH-9000
Switzerland

Christian Keuschnigg (Contact Author)

University of St. Gallen – Department of Economics (FGN-HSG) ( email )

Varnbuelstrasse 19
St. Gallen, 9000
Switzerland

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Mirela Keuschnigg

University of St. Gallen - SEPS: Economics and Political Sciences ( email )

University of St. Gallen
St. Gallen, CH-9000
Switzerland

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
114
Abstract Views
883
rank
259,220
PlumX Metrics