Population Aging in Japan: Demographic Shock and Fiscal Sustainability

By M. Mühleisen, Hamid Faruqee. Social Science Research Network, 2001

122 citations recorded by the source corpus.

The paper develops a general equilibrium framework to examine the economic implications of population aging in Japan. Particular attention is paid to aggregate saving behavior which is modeled on the basis of empirical age-earnings profiles using a life-cycle approach. The paper's objectives are to (i) estimate the output loss caused by demographic changes and assess the impact of aging on Japan's government finances; and (ii) compare fiscal policy options with respect to their effects on output growth and economic welfare.

Subfields: Demography

View Paper: https://www.semanticscholar.org/paper/5f6b659554514ffdf11ad35f3dd69b3f188921b7