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Population Aging and Inventive Activity

38 Pages Posted: 27 Apr 2016  

Andreas Irmen

University of Luxembourg - Ceter for Research in Economic Analysis (CREA); CESifo (Center for Economic Studies and Ifo Institute for Economic Research), Munich

Anastasia Litina

University of Ioannina

Date Written: April 6, 2016

Abstract

This research empirically establishes and theoretically motivates the hypothesis that population aging has a hump-shaped effect on inventive activity. We estimate this hump-shaped relationship in a panel of 33 OECD countries over the period 1960-2012. The increasing part of the hump captures the awareness that population aging requires inventive activity to guarantee current and future standards of living. The decreasing part reflects the tendency of aging societies to lose dynamism and the willingness to take risks. Policy-wise our analysis suggests that raising the awareness of individuals about the consequences of population aging may facilitate the adoption of strategies and policies encouraging inventive activity and economic growth.

Keywords: population aging, inventive activity, panel estimation

JEL Classification: J110, O310, O500, O570

Suggested Citation

Irmen, Andreas and Litina, Anastasia, Population Aging and Inventive Activity (April 6, 2016). CESifo Working Paper Series No. 5841. Available at SSRN: https://ssrn.com/abstract=2770423

Andreas Irmen

University of Luxembourg - Ceter for Research in Economic Analysis (CREA) ( email )

162a, avenue de la Faïencerie
Luxembourg, L – 1511
Luxembourg

HOME PAGE: http://wwwen.uni.lu/recherche/fdef/crea/people/andreas_irmen

CESifo (Center for Economic Studies and Ifo Institute for Economic Research), Munich

Poschinger Str. 5
Munich, DE-81679
Germany

Anastasia Litina (Contact Author)

University of Ioannina ( email )

45110 Ioannina
Greece

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