Abstract
This paper empirically investigates the macroeconomic effects of demographic changes, focusing on saving rates and current account balances. The econometric investigation based on the panel VAR model shows substantial demographic effects on national saving rates and current account balances in the major advanced (G-7) countries. An increase in the dependency rate significantly lowers saving rates, especially public saving rates. Further, a higher dependency rate significantly worsens current account balances.
Original language | English |
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Pages (from-to) | 236-256 |
Number of pages | 21 |
Journal | Japan and the World Economy |
Volume | 20 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2008 Mar |
Keywords
- Current account
- Demographic changes
- Panel VAR
- Saving
ASJC Scopus subject areas
- Finance
- Economics and Econometrics
- Political Science and International Relations