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Demographic Dynamics and the Empirics of Economic Growth

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  • Mr. Michael Sarel

Abstract

This paper examines the effects of demographic dynamics on the measured rates of economic growth. First, it develops a model of production with labor productivity that varies with age. Second, it uses macroeconomic and demographic data to estimate the relative productivity of different age groups. Third, it constructs a panel database of effective labor supply in order to reflect the changing age-structure of the population. Fourth, it decomposes the historical measured growth rates into effects of demographic dynamics and into “real” growth rates, net of demographic effects.

Suggested Citation

  • Mr. Michael Sarel, 1994. "Demographic Dynamics and the Empirics of Economic Growth," IMF Working Papers 1994/143, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1994/143
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