THE ECONOMICS OF POPULATION AGING

Contents
1. Introduction 968
2. Population aging: facts and determinants 969
2.1. Facts and forecasts on population aging 969
2.2. Sources of aging: fertility and mortality 970
2.3. Immigration 975
3. Aging, production, and consumption 977
3.1. The effect of population aging on youth and old-age dependency 977
3.2. Age structure, population growth, and dependency in stable populations 979
3.3. Implications of changes in morbidity and mortality for support ratios 981
3.4. Aging and sustainable consumption in a model with capital 983
3.5. Aging and the labor market 989
4. Aging in a life-cycle model 994
4.1. Demographic change in a two-period life-cycle model 995
4.2. Aging and saving in partial equilibrium 996
4.3. Aging and saving in general equilibrium 997
4.4. Limitations of the life-cycle model 998
5. Social security and other government programs 1000
5.1. Dependency ratios for government programs 1000
5.2. Interaction of age structure, social security, and life-cycle saving 1001
5.3. The response of social security to demographic change 1003
5.4. Political economy of social security benefits and of increased aged population 1005
6. Within-family intergenerational relations and aging 1006
6.1. Parent to child transfers 1007
6.2. Child to parent transfers 1008
7. Conclusion 1009
References 1010