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Macroeconomic Effects of an Ageing Population in Mauritius

Author

Listed:
  • Julia Włodarczyk
  • Indranarain Ramlall
  • Jan Acedański

Abstract

The economic literature focuses mostly on faster ageing of population among developed countries; however, many developing countries experience even more dramatic pace of this process. Mauritius, with the median age of population higher than the world average since 1990s, represents a prominent example of such a case. In this paper, we analyse demographic developments in Mauritius and discuss their macroeconomic implications using an open‐economy OLG model with demographic shocks. We project that a decline in the Mauritian interest rate and net foreign assets to GDP resulting from ageing will be accompanied by a temporary increase in GDP, consumption and investment.

Suggested Citation

  • Julia Włodarczyk & Indranarain Ramlall & Jan Acedański, 2020. "Macroeconomic Effects of an Ageing Population in Mauritius," South African Journal of Economics, Economic Society of South Africa, vol. 88(4), pages 551-574, December.
    • Handle: RePEc:bla:sajeco:v:88:y:2020:i:4:p:551-574
    DOI: 10.1111/saje.12266
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    References listed on IDEAS

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