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on Economics of Ageing |
| By: | Rainer Kotschy; David E. Bloom; Andrew J. Scott |
| Abstract: | Analysis of population aging is typically framed in terms of chronological age. However, chronological age itself is not necessarily deeply informative about the aging process. This paper reviews literature and conducts empirical analyses aimed at investigating whether chronological age is a reliable proxy for physiological functioning when used in models of economic behavior and outcomes. We show that chronological age is an unreliable proxy for physiological functioning due to appreciable differences in how aging unfolds across people, health domains, and over time. We further demonstrate that chronological age either fails to predict economic variables when used in lieu of physiological functioning, or that it predicts additional effects on economic behavior and outcomes that are largely unrelated to physiological aging. Continued reliance on chronological age as a proxy for physiological functioning might impede the ability of societies to fully harness the benefits of increasing longevity. |
| JEL: | I10 I30 J10 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33124 |
| By: | Banda, Mutisunge Allan |
| Abstract: | Just as human age is a key determinant of individual economic productivity, a population’s age structure is a significant causal factor of economic productivity and growth. This paper attempts to update the traditional theories of economic growth by incorporating demographic transition theory and intergenerational transfers into long run economic growth. Whereas contemporary theory interprets the demographic dividend as a transitory and uncertain exogenous stimulant to economic growth, this paper will attempt to demonstrate that age structure is instead a persistent and endogenous determinant of economic productivity. In addition, the paper will argue that a significant portion of modern and ancient economic divergence can be explained by variations in age structure. These findings will have important implications for policymakers and researchers interested economic development. |
| Keywords: | Demographic Economics; Economic Growth; Economic Theory; Macroeconomics; Quantitative Methods |
| JEL: | E0 J1 O47 |
| Date: | 2024–11–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122725 |