Brito, Paulo
(2014):
*Interest rates and endogenous population growth: joint age-dependent dynamics.*

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## Abstract

This paper presents a uncertain-lifetime overlapping-generations continuous time model for an Arrow-Debreu economy with endogenous fertility, in which age-dependent variables are explicitly introduced. The general equilibrium paths for the discount factor and newborns are derived from a system of two coupled forward-backward integral equations. The forward mechanism is related to aggregation between cohorts and the backward mechanism to life-cycle decisions. We study changes in the age-dependent profiles of age-dependent distributions for productivity and time use. We show that high maximum ages of productivity and child-rearing fitness increase the long run interest and growth rates, and low maximum ages can lead to asset pricing bubbles and negative population growth rates.

Item Type: | MPRA Paper |
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Original Title: | Interest rates and endogenous population growth: joint age-dependent dynamics |

Language: | English |

Keywords: | OLG, endogenous fertility, Arrow-Debreu, integral equations |

Subjects: | C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy J - Labor and Demographic Economics > J1 - Demographic Economics |

Item ID: | 58656 |

Depositing User: | Paulo Brito |

Date Deposited: | 17 Sep 2014 05:18 |

Last Modified: | 26 Sep 2019 19:51 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/58656 |