The economic effects of ageing

    Project: Research project

    Description

    Firstly, a survey of the literature on the (macro)economic effects of ageing will be carried out. When a vast part of the population retires, two reinforcing effects on the rewards of production factors, such as the (real) wage and (real) interest rate, may occur. Ageing and dissaving will affect the relevant supply of production factors, while at the same time the demand for a particular labour intensive service, like health care, is expected to increase. Furthermore, the development of the capital of pension funds will be investigated.
    The analysis will proceed by developing a model which pays attention to specific consumption patterns of the working population on the one hand and the retired on the other hand, in combination with increasing scarcity of labour. This could be done in a model describing a two-sector economy with two factors of production. In one output sector (for instance, health care, which is demanded more intensively by elderly people) the substitutability of these production factors is very low.
    Short titleThe economic effects of ageing
    StatusFinished
    Effective start/end date1/09/981/03/03