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This paper uses the Auerbach-Kotlikoff Dynamic Simulation Model to compare the projected demographic transitions in Canada and the United States. The simulation model determines the perfect foresight transition path of an economy in which individuals live to age 75. The model's preferences are...
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prices, and if they adjust their non-housing savings accordingly, then welfare losses in retirement could be mitigated. This … prices?; and (2) How are household savings decisions affected by capital gains in housing? We use metropolitan statistical … forecastability of housing prices. Further, we use data on five-year savings rates from the Panel Study of Income Dynamics and find no …
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In comparing Canada with the U.S., we first simulate the U.S. demographic transition, treating the U.S. as a closed economy. The time path of interest rates obtained from the U.S. simulations are then used in the Canadian simulations. In the Canada simulations, Canada is assumed to be an open...
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This paper compares the predictions of three different saving models with respect to the impact of projected U.S. demographic change on future U.S. saving rates. The three models are the life cycle model, the infinite horizon altruism model, and a reduced form econometric model. The findings for...
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