Saving and demographic changeThe global dimension

Saving and demographic change

The global dimension

Bosworth

Barry

Bosworth, Barry

Author

Chodorow-Reich

Gabriel

Chodorow-Reich, Gabriel

Author

text

working paper

Chestnut Hill, Mass. Center for Retirement Research at Boston College20072007monographic

Chestnut Hill, Mass.

Center for Retirement Research at Boston College

2007

monographic

Englisheng

English

eng

electronicapplication/pdfborn digital

electronic

application/pdf

born digital

This paper uses a panel data set of 85 countries covering 1960-2005 to investigate the macroeconomic linkages between national rates of saving and investment and population aging. The issue takes on added significance because of the recent suggestion that the decline in global interest rates has been driven by demographic changes in the industrial economies. We do find a significant correlation between the age composition of the population and nations rates of saving and investment, but the effects vary substantially by region. They are very strong for the non-industrial economies of Asia, but weak in the high-income countries. We also find evidence of demographic effects on both the public and private components of national saving. Furthermore, we conclude that the demographic effects on saving will be less disruptive than sometimes believed because of offsetting declines in investment. However, the effects on saving are stronger than those for investment, implying that most aging economies will ultimately be pushed in the direction of current account deficits...

Barry Bosworth and Gabriel Chodorow-Reich.

CRR WP2007-2

CRR WP

2007-2

http://crr.bc.edu/images/stories/Working_Papers/wp_2007-2.pdf

MChBEnglisheng

MChB

Englisheng

English

eng