effects of the ageing European population on economic growth and budgets

implications for immigration and other policies by Feldstein, Martin S.

Publisher: National Bureau of Economic Research in Cambridge, Mass

Written in English
Published: Pages: 15 Downloads: 912
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Subjects:

  • Aging -- Economic aspects -- Europe,
  • Fiscal policy -- Europe -- 21st century,
  • Europe -- Population -- Economic aspects

Edition Notes

Other titlesAging and immigration ... 2006.
StatementMartin S. Feldstein.
SeriesNBER working paper series -- no. 12736., Working paper series (National Bureau of Economic Research) -- working paper no. 12736.
ContributionsNational Bureau of Economic Research.
The Physical Object
Pagination15 p. ;
Number of Pages15
ID Numbers
Open LibraryOL17631670M
OCLC/WorldCa77009359

4 Economic effects of population growth and ageing in Australia George Kudrna and Alan Woodland. 1. University of New South Wales. Introduction. Population ageing is a worldwide demographic phenomenon that has resulted from changes in fertility and mortality. Australia, like other developed countries, has been experiencing ageing of its.   Effects Of Aging And Population Growth On Health Costs. We first estimated the annual percentage contribution of aging and population growth (taken together) to the rise in . We review standard economic growth models concentrating on the relationship between population ageing and economic growth and develop a growth model with endogenous human capital and endogenous fertility. With this model we analyse the effects of education policy and family policy on economic growth. The main result for economic policy is that. The Role of Population in Economic Growth E. Wesley F. Peterson1 Abstract The relationship between population growth and economic growth is controversial. This article draws on historical data to chart the links between population growth, growth in per capita output, and overall economic growth over the past years.

  The third way that aging might affect economic growth is that older people aren't as innovative, technically savvy, or willing to take risks as younger people. we're going to see the decline.   Migration, fertility levels, life expectancy and the respective strength of job markets are all altering the make-up of Europe’s population. Analysing the demographics has become increasingly important, since most projections suggest that ageing populations will be a . THE IMPACT OF AN AGEING POPULATION ON ECONOMIC GROWTH 9 words, economic growth may also influence the determinants of an ageing population).4 FIGURE 2 Main mechanisms through which an ageing population has an impact on economic growth Source: Author's design 4 Given that this paper focuses on the impact of ageing on growth, the important issue of. The world’s population is ageing at such a rate that the over 60s now make up over 10%, and by this is likely to rise to over 20%. Increased longevity is one of the clear successes of economic development, with life expectancy an accepted and central indicator of r, an ageing population does not come without significant costs and raises many issues that policy makers.

CiteScore: ℹ CiteScore: CiteScore measures the average citations received per peer-reviewed document published in this title. CiteScore values are based on citation counts in a range of four years (e.g. ) to peer-reviewed documents (articles, reviews, conference papers, data papers and book chapters) published in the same four calendar years, divided by the number of.   Abstract. This paper presents an assessment of the budgetary impact of ageing for the EU Member States. It draws upon the macroeconomic assumptions developed jointly by the Ageing Working Group of the Economic Policy Committee and the European Commission-Directorate General for Economic and Financial Affairs for the purpose of making age-related expenditure projections. 2 days ago  Features research into economic approaches to human biology, the relationship between population dynamics and public choice, and the impact of population on the distribution of income and wealth The journal is published in collaboration with POP at UNU-MERIT, the Global Labor Organization (GLO) and the European Society for Population Economics.

effects of the ageing European population on economic growth and budgets by Feldstein, Martin S. Download PDF EPUB FB2

The Effects of the Ageing European Population on Economic Growth and Budgets: Implications for Immigration and Other Policies Martin Feldstein* Medical science and changes in personal behavior have extended life expectancy and will continue to do so in the years ahead.

A variety of social changes have led to reduced birth rates. The Effects of the Ageing European Population on Economic Growth and Budgets: Implications for Immigration and Other Policies Martin S.

Feldstein. NBER Working Paper No. Issued in December NBER Program(s):Labor Studies, Public Economics. The ageing of the population presents a major fiscal challenge for the countries of Europe. Download Citation | The Effects of the Ageing European Population on Economic Growth and Budgets: Implications for Immigration and Other Policies |.

Downloadable. The ageing of the population presents a major fiscal challenge for the countries of Europe. The combination of increased longevity and a reduced birth rate will directly reduce the growth rates of the European economies by slowing the growth of the capital stock and by weakening the productivity of the labor force.

This slower growth of GDP means a smaller tax base and less tax. The Journal of the Economics of Ageing, 1–2, 16– Crossref, Google Scholar; Meijer C, Wouterse B, Polder J and Koopmanschap M [] The effect of population aging on health expenditure growth: A critical review.

European Journal of Ageing, 10 (4), – Crossref, ISI, Google Scholar; Mérette, M and P Georges ().Cited by: 6. Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory.

The Effects of the Ageing European Population on Economic Growth Effects of the ageing European population on economic growth and budgets book Effects of the Ageing European Population on Economic Growth and Budgets: Implications for Immigration and Other Policies Unfortunately the paper is only downloadable for those who have access to a university server, but I would encourage those who can to read the full.

We review standard economic growth models concentrating on the relationship between population ageing and economic growth and develop a growth model with endogenous human capital and endogenous fertility. With this model we analyse the effects of education policy and family policy on economic growth.

Gonzalez-Eiras, M and D Niepelt (), “ Ageing, Government Budgets, Retirement, and Growth ”, European Economic Review, forthcoming. OECD (), Economic Outlook (government fixed capital formation).

OECD (), Education At a Glance, (direct public expenditure, subsidies to households and other private entities). Population ageing is a global phenomenon.

The rate of growth in older people (people aged over 65) is expected to far outpace the rise of the working age population (people age ).

The chart below implies that the old age population will grow by over % over the course of this century by comparison to the working age population which will.

Europe is ageing and this will have an impact on retirement systems (pay-as-you-go as well as funded), government expenditure and general economic growth.

Theoretically, ageing populations could lower per capita GDP growth in Europe by around per cent annually. However, this should be seen as a worst-case scenario; it is quite likely that some of the underlying assumptions will not fully.

Get this from a library. The effects of the ageing European population on economic growth and budgets: implications for immigration and other policies. [Martin S Feldstein; National Bureau of Economic Research.]. Get this from a library. The effects of the ageing European population on economic growth and budgets: implications for immigration and other policies.

[Martin S Feldstein; National Bureau of Economic Research.] -- The ageing of the population presents a major fiscal challenge for the countries of Europe.

The combination of increased longevity and a reduced birth rate will directly. The relationship between population growth and growth of economic output has been studied extensively (Heady & Hodge, ).Many analysts believe that economic growth in high-income countries is likely to be relatively slow in coming years in part because population growth in these countries is predicted to slow considerably (Baker, Delong, & Krugman, ).

The Effects of the Ageing European Population on Economic Growth and Budgets: Implications for Immigration and Other Policies NBER Working Paper No. w 17 Pages Posted: 7 Dec Last revised: 3 Feb   The ageing of Europe’s population will also have significant implications for its labour force. While the total supply of labour in the EU among those aged 20 to 64 is expected to fall by % between and (% in the euro area), labour force participation rates are projected to rise from % in to % in The Effects of the Ageing European Population on Economic Growth and Budgets: Implications for Immigration and Other Policies.

Martin Feldstein. NoNBER Working Papers from National Bureau of Economic Research, Inc. Abstract: The ageing of the population presents a major fiscal challenge for the countries of Europe.

The combination of. European Economic Review 56(1) DOI: 10 excessive allocation to health care because IMPACT OF AGEING ON ECONOMIC GROWTH 3 of the existence of an ageing population. The Implications of an Aging Population. The world is experiencing a seismic demographic shift—and no country is immune to the consequences.

While increasing life expectancy and declining birth rates are considered major achievements in modern science and healthcare, they will have a significant impact on future generations. The share of the population aged 60 and over is projected to increase in nearly every country in the world during Population ageing will tend to lower both labour-force participation and savings rates, thereby raising concerns about a future slowing of economic growth.

The economic impact of ageing populations in the EU25 Member States by Giuseppe Carone, Declan Costello, the sources of economic growth will alter over time, with productivity becoming the dominant source. Fiscal challenges will come from both a higher share of the total population in older age Europe’s population will undergo.

The world's population is aging. Over year-olds are growing faster than all younger age groups and Europe is leading the demographic change. population age 19 and under will drop from 29 percent to just over 23 percent. This paper examines how demographic developments will affect the pattern of economic growth over the next 40 years.

Demographic changes will alter labor supply, private and public saving rates, and the growth of nation-al income and consumption.

How these variables ulti. Downloadable. Population aging is a process that shapes the economic environment in most of the developed economies. Thus, understanding the dynamics between public finance and the demographic variables enables policy-makers to adapt and to ameliorate their medium-term budgetary frameworks.

The aim of this paper is to examine the fiscal implications of the demographic shift using panel data on. Recent developments in global population trends characterized by low birth rates and rising life expectancy are leading to a graying population worldwide. Aging is bound to have pervasive effects on economic growth, inflation, house and equity prices, public spending and taxation, education and healthcare provision, and wealth distribution.

EU finance ministers on Tuesday (15 May) are set to endorse a report on the impact of an ageing population on public finances, calling for further budget cuts and longer working periods.

The page-long " Ageing Report" drafted by EU commission and finance ministry officials and seen by this website casts a grim light on the perspectives. THE ECONOMIC AND FINANCIAL CONSEQUENCES OF POPULATION AGEING The importance of age structure.

Economic growth may be influenced by changes in population age structure. To analyse age structure, a life-cycle perspective is adopted, based on people’s economic needs and contributions during the various stages of life. An economy with a significant share of seniors and retirees has different demand drivers than an economy with a higher birth rate and a larger working-age population.

For example, rapidly aging. Ageing diminishes economic growth The ageing population is defined as the proportion of population aged o which is more than 10 percent of the total population (United Nation, ). The negative effects of an ageing population on economic growth are both direct and indirect.

The direct effect is the scale effect on economic growth. 4 Global Population Ageing: Peril or Promise. What are the major drivers of population. ageing. Three drivers stand out: • Declining fertility. The world’s total fertility rate – that is, the number of children born per woman – fell from 5 children per woman in to roughly today, and is projected to drop to about 2 by Most.

With an aging population, there is the potential that the world will become a huge nursing home needed to care for more elderly patients.

This will mean a change for many nations in employment practices, pension plan structuring, health care costs, and the economic impact of an aging population. One example of the impact of population on economic growth can be seen in Detroit, where the local infrastructure suffered dramatically as people moved away.

The city filed for bankruptcy in and used the freedom from debt to reinvest in the local economy. But today, government officials still work hard to boost the middle-class population.Population aging is widely expected to have detrimental effects on aggregate economic growth.

However, we have little empirical evidence about the actual existence or magnitude of such effects. In this paper, we exploit differential aging patterns at the state level in the United States between and Many states have already experienced high growth rates of the 60+.