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dc.creatorVogel, Edgar
dc.creatorLudwig, Alexander
dc.creatorBörsch-Supan, Axel
dc.date.accessioned2021-09-28T09:22:30Z
dc.date.available2021-09-28T09:22:30Z
dc.date.issued2014-12-29
dc.identifier.urihttps://fif.hebis.de/xmlui/handle/123456789/2183
dc.description.abstractProjected demographic changes in industrialized and developing countries vary in extent and timing but will reduce the share of the population in working age everywhere. Conventional wisdom suggests that this will increase capital intensity with falling rates of return to capital and increasing wages. This decreases welfare for middle aged asset rich households. This paper takes the perspective of the three demographically oldest European nations — France, Germany and Italy — to address three important adjustment channels to dampen these detrimental effects of aging in these countries: investing abroad, endogenous human capital formation and increasing the retirement age. Our quantitative finding is that endogenous human capital formation in combination with an increase in the retirement age has strong implications for economic aggregates and welfare, in particular in the open economy. These adjustments reduce the maximum welfare losses of demographic change for households alive in 2010 by about 2.2 percentage points in terms of a consumption equivalent variation.
dc.rightsAttribution-ShareAlike 4.0 International
dc.rights.urihttp://creativecommons.org/licenses/by-sa/4.0/
dc.subjectHousehold Finance
dc.subjectMacro Finance
dc.titleAging and Pension Reform: Extending the Retirement Age and Human Capital Formation
dc.typeWorking Paper
dcterms.referenceshttps://fif.hebis.de/xmlui/handle/123456789/1514?UN
dcterms.referenceshttps://fif.hebis.de/xmlui/handle/123456789/1480?PSID
dc.source.filename82_SSRN-id2553236
dc.identifier.safeno82
dc.subject.keywordspopulation aging
dc.subject.keywordshuman capital
dc.subject.keywordswelfare
dc.subject.keywordspension reform
dc.subject.keywordsretirement age
dc.subject.keywordsopen economy
dc.subject.jelC68
dc.subject.jelE17
dc.subject.jelE25
dc.subject.jelJ11
dc.subject.jelJ24
dc.subject.topic1familiar
dc.subject.topic1smith
dc.subject.topic1steady
dc.subject.topic2age
dc.subject.topic2national
dc.subject.topic2direct
dc.subject.topic3feed
dc.subject.topic3compute
dc.subject.topic3wage
dc.subject.topic1nameConsumption
dc.subject.topic2nameHousehold Finance
dc.subject.topic3nameMonetary Policy
dc.identifier.doi10.2139/ssrn.2553236


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Attribution-ShareAlike 4.0 International
Except where otherwise noted, this item's license is described as Attribution-ShareAlike 4.0 International