scholarly journals A life-cycle overlapping-generations model of the small open economy

2007 ◽  
Vol 60 (1) ◽  
pp. 88-121 ◽  
Author(s):  
B. J. Heijdra ◽  
W. E. Romp
Keyword(s):  
Life Cycle ◽  
Open Economy ◽  
Overlapping Generations ◽  
Small Open Economy ◽  
Overlapping Generations Model

Saving, fertility and public policy in an overlapping generations small open economy

2019 ◽  
Vol 81 ◽  
pp. 16-29 ◽  
Author(s):  
Luca Spataro ◽  
Luciano Fanti ◽  
Pier Mario Pacini
Keyword(s):  
Public Policy ◽  
Open Economy ◽  
Overlapping Generations ◽  
Small Open Economy

scholarly journals ADULT LONGEVITY AND GROWTH TAKEOFF

2014 ◽  
Vol 20 (1) ◽  
pp. 165-188 ◽  
Author(s):  
Daishin Yasui
Keyword(s):  
Life Cycle ◽  
Life Expectancy ◽  
Early Retirement ◽  
Overlapping Generations ◽  
Working Life ◽  
Adult Longevity ◽  
Overlapping Generations Model ◽  
Fertility Decisions ◽  
Retirement Decisions ◽  
Positive Effect

This paper develops an overlapping-generations model in which agents make educational and fertility decisions under life-cycle considerations and retirement from work is distinguished from death. Gains in adult longevity induce agents to decrease fertility, invest in education, and achieve higher income in order to save more for retirement. Even if working life is shortened by early retirement, this mechanism works as long as adult longevity increases sufficiently. Our model can explain the positive effect of life expectancy on education without contradicting the fact that working life length has not substantially increased, because of retirement. We also provide new insights into the interaction between fertility and retirement decisions.

GLOBALIZATION AND THE INDUSTRIAL REVOLUTION

2015 ◽  
Vol 20 (3) ◽  
pp. 643-666 ◽  
Author(s):  
Pedro Cavalcanti Ferreira ◽  
Samuel Pessôa ◽  
Marcelo Rodrigues dos Santos
Keyword(s):  
Open Economy ◽  
Historical Development ◽  
Overlapping Generations ◽  
Industrial Revolution ◽  
Transition Period ◽  
Closed Economy ◽  
Overlapping Generations Model ◽  
Economy Model ◽  
Development Path ◽  
Key Variables

This paper argues that trade specialization played an indispensable role in supporting the Industrial Revolution. We calibrate a two-good and two-sector overlapping generations model for England's historical development and investigate how much different England's development path would have been if it had not globalized in 1840. The open-economy model is able to match the data closely, but the closed-economy model cannot explain the fall in the value of land relative to wages observed in the nineteenth century. Without globalization, the transition period in the British economy would have been considerably longer than that observed in the data and key variables, such as the share of labor force in agriculture, would have converged to figures very distant from the actual ones.

Demographic change, PAYG pensions and child policies

2016 ◽  
Vol 17 (4) ◽  
pp. 469-487 ◽  
Author(s):  
PETER JOSEF STAUVERMANN ◽  
RONALD RAVINESH KUMAR
Keyword(s):  
Life Expectancy ◽  
Open Economy ◽  
Pension System ◽  
Small Open Economy ◽  
Overlapping Generations Model ◽  
Number Of Children ◽  
Payg Pensions ◽  
Child Allowances ◽  
Pension Benefits ◽  
Consequent Increase

AbstractThe aim of the paper is to investigate how child policies affect the population growth and to what extent these policies are useful to increase pension benefits of a pay-as-you-go pension system in a small open economy. Specifically, we analyze two different child policies: the provision of child allowances and an educational subsidy. We apply an overlapping generations model in its canonical form, where we consider endogenous fertility, endogenous growth and endogenous aging of the society. From the analysis, we conclude that with a child allowance, there is a consequent increase in the number of children and decrease in pension benefits and life expectancy. On the other hand, we note that with an educational subsidy, there is a decrease in the number of children, and an increase in the pension benefits and the life expectancy, respectively. The model developed aims to complement the models of the Unified Growth Theory.

scholarly journals AGING, THE GREAT MODERATION, AND BUSINESS-CYCLE VOLATILITY IN A LIFE-CYCLE MODEL

2016 ◽  
Vol 21 (2) ◽  
pp. 362-383 ◽  
Author(s):  
Burkhard Heer ◽  
Stefan Rohrbacher ◽  
Christian Scharrer
Keyword(s):  
Life Cycle ◽  
Labor Supply ◽  
Overlapping Generations ◽  
Empirical Studies ◽  
Output Volatility ◽  
Great Moderation ◽  
Overlapping Generations Model ◽  
Age Composition ◽  
The Impact ◽  
Shaped Pattern

According to empirical studies, the life cycle of labor supply volatility exhibits a U-shaped pattern. This may lead to the conclusion that demographic change induces a drop in output volatility. We present an overlapping-generations model that replicates the empirically observed pattern and study the impact of demographic transition on output volatility. We find that the change in age composition itself has only a marginal influence on output volatility, as the mitigating effect of more individuals with lower labor supply volatilities is compensated for by higher age-specific labor shares. Instead, the driving force behind the Great Moderation in our model is the downward shift of the age-specific labor supply volatility curve.

scholarly journals Projecting a Life-cycle Income – a Simulation Model for the Slovak Pension Benefit Statement

2020 ◽  
Vol 15 (4) ◽  
pp. 271-284
Author(s):  
Ján Šebo ◽  
Daniela Danková ◽  
Ivan Králik
Keyword(s):  
Life Cycle ◽  
Longitudinal Data ◽  
Open Economy ◽  
Small Open Economy ◽  
Simulation Method ◽  
Projection Methods ◽  
Pension Benefit ◽  
Wide Range ◽  
Income Processes ◽  
Labor Market Shocks

The introduction of a regulation requiring pension asset managers to provide savers with an estimation of pension benefits opened a wide range of scientific questions on the projection methods and estimation of input parameters. One of them is the estimation of life-cycle income for calculating expected contributions and the estimation of the benefit ratio at the moment of retirement. We present an estimation of life-cycle income functions for various age and educational cohorts influenced by temporary labor market shocks. By employing the resampling simulation method for incorporating macroeconomic shocks, we have shown that using longitudinal data on the income process from a large closed economy could bring valid results for a country with a small open economy as well where the longitudinal data on income processes of individuals are unavailable. Our findings could serve a practical use when pension or other social benefits tied to individual income should be modelled.

scholarly journals A Note on Child Policy and Fertility in an Overlapping Generations Small Open Economy: When the Labour Market Institutions Matter

2012 ◽  
Vol 2012 ◽  
pp. 1-6
Author(s):  
Luciano Fanti ◽  
Luca Gori
Keyword(s):  
Labour Market ◽  
Open Economy ◽  
Overlapping Generations ◽  
Small Open Economy ◽  
Public Provision ◽  
Market Institutions ◽  
Labour Market Institutions ◽  
The Public ◽  
Child Policy ◽  
Child Allowances

We examine how fertility reacts to the public provision of child allowances in a small open economy with overlapping generations. When the labour market is competitive, we find that a child allowance policy acts as a fertility-enhancing device. In contrast, when the labour market is unionised the child policy may be ineffective.

PAYG challenge for preferential migration

2020 ◽  
pp. 1-16
Author(s):  
Gurgen Aslanyan ◽  
Oleg Mariev
Keyword(s):  
Theoretical Model ◽  
Open Economy ◽  
Overlapping Generations ◽  
Heterogeneous Agents ◽  
Small Open Economy ◽  
Immigration Policies ◽  
Immigration Control ◽  
Policy Setting ◽  
Future Population

Abstract The current study assesses the role of the pay-as-you-go system as an intergenerational redistributive mechanism while immigration control is considered. A theoretical model of a small open economy populated with overlapping generations of heterogeneous agents is used to show that skill-favouring immigration policies are, under rather permissive conditions, welfare depriving for the overall population. However, the policy-setting generation is shown to benefit from immigration control, thus decreasing the welfare for the future population.

scholarly journals A Quantitative Analysis of Female Employment in Senegal

2019 ◽  
Vol 19 (241) ◽  
Author(s):  
Vivian Malta ◽  
Angelica Martinez ◽  
Marina Mendes Tavares
Keyword(s):  
Labor Market ◽  
Life Cycle ◽  
Quantitative Analysis ◽  
Overlapping Generations ◽  
Female Employment ◽  
Overlapping Generations Model ◽  
Percentage Points ◽  
Working Age ◽  
Working Age Population ◽  
The Impact

Female-to-male employment in Senegal increased by 14 percentage points between 2006 and 2011. During the same period years of education of the working age population increased 27 percent for females and 13 percent for males, reducing gender gaps in education. In this paper, we quantitatively investigate the impact of this increase in education on female employment in Senegal. To that end, we build an overlapping generations model that captures barriers that women face over their life-cycle. Our main findings are: (i) the improvement in years of education can explain up to 44 percent of the observed increased in female-to-male employment ratio and (ii) the rest can be explained by a decline in the discrimination against women in the labor market.

scholarly journals Openness, Bureaucratic Corruption And Public Policy In An Endogenous Growth Model

2010 ◽  
Vol 9 (3) ◽  
Author(s):  
Rangan Gupta ◽  
Emmanuel Ziramba
Keyword(s):  
Endogenous Growth ◽  
Growth Model ◽  
Open Economy ◽  
Overlapping Generations ◽  
Small Open Economy ◽  
Empirical Literature ◽  
Bureaucratic Corruption ◽  
Financial Repression ◽  
Endogenous Growth Model ◽  
The Government

In this paper, we develop a dynamic general equilibrium overlapping generations monetary endogenous growth model of a financially repressed small open economy characterized by bureaucratic corruption, and, in turn, analyze optimal policy decisions of the government following an increase in the degree of corruption. As suggested in the empirical literature, we find that increases in the degree of corruption should ideally result in an increase in the ratio of seigniorage to total revenue, as an optimal response of the benevolent government. In addition, higher degrees of corruption are also found to be accompanied by higher levels of financial repression. 

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