Canada and the United States. The simulation model determines the perfect foresight transition path of an economy in which … handling changes in demographics and fiscal policies, the model can be run for closed or open economies.In comparing Canada … interest rates obtained from the U.S. simulations are then used in the Canadian simulations. In the Canada simulations, Canada …

In comparing Canada with the U.S., we first simulate the U.S. demographic transition, treating the U.S. as a closed … Canada simulations, Canada is assumed to be an open economy which takes the U.S. interest rate as given. The simulations … indicate that demographics are likely to have significant effects on rates of saving and taxation in both the U.S. and Canada …