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Global Demographic Trends, Capital Mobility, Saving and Consumption in Latin America and the Caribbean (LAC)

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Listed:
  • Attanasio, Orazio P.
  • Bonfatti, Andrea
  • Kitao, Sagiri
  • Weber, Guglielmo

Abstract

This paper studies the effect of demographic transitions on the economy of Latin America and the Caribbean (LAC). The paper builds a model of multi-regions of the world and derives the path of macroeconomic variables including aggregate output, capital, labor and the saving rate as economies face a rapid shift in demographics. The timing and the extent of the demographic transition differ across regions. The model is simulated under both closed economy and open economy assumptions to quantify the roles played by factor mobility across regions in shaping capital accumulation and equilibrium factor prices.

Suggested Citation

  • Attanasio, Orazio P. & Bonfatti, Andrea & Kitao, Sagiri & Weber, Guglielmo, 2015. "Global Demographic Trends, Capital Mobility, Saving and Consumption in Latin America and the Caribbean (LAC)," IDB Publications (Working Papers) 6945, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:6945
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    References listed on IDEAS

    as
    1. Rakesh Mohan, 2004. "Fiscal challenges of population aging : the Asian experience," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, issue Aug, pages 299-357.
    2. Jesus Fernández-Villaverde & Dirk Krueger, 2007. "Consumption over the Life Cycle: Facts from Consumer Expenditure Survey Data," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 552-565, August.
    3. Krueger, Dirk & Ludwig, Alexander, 2007. "On the consequences of demographic change for rates of returns to capital, and the distribution of wealth and welfare," Journal of Monetary Economics, Elsevier, vol. 54(1), pages 49-87, January.
    4. Mendoza, Enrique G. & Razin, Assaf & Tesar, Linda L., 1994. "Effective tax rates in macroeconomics: Cross-country estimates of tax rates on factor incomes and consumption," Journal of Monetary Economics, Elsevier, vol. 34(3), pages 297-323, December.
    5. repec:idb:wpaper:390 is not listed on IDEAS
    6. Vittorio Corbo, 2004. "Policy challenges of population aging and pension systems in Latin America," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, issue Aug, pages 257-280.
    7. Attanasio Orazio P. & Kitao Sagiri & Violante Giovanni L., 2006. "Quantifying the Effects of the Demographic Transition in Developing Economies," The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(1), pages 1-44, April.
    8. Attanasio, Orazio & Kitao, Sagiri & Violante, Giovanni L., 2007. "Global demographic trends and social security reform," Journal of Monetary Economics, Elsevier, vol. 54(1), pages 144-198, January.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Wenli Li & Fang Yang & Michael Dotsey, 2017. "The Consequences of an Aging Chinese Miracle," 2017 Meeting Papers 154, Society for Economic Dynamics.
    2. repec:idb:brikps:7677 is not listed on IDEAS

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    More about this item

    Keywords

    Latin America and the Caribbean (LAC); Capital flows; Demographic trends;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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