This paper studies the effect of demographic change on national saving, global interest rates, and international capital flows, focusing on the role of the public pension system. We develop a small open economy overlapping generations model to illustrate the channels through which demographic...

Building on the evolving literature on the topic, this paper reviews the relationship between demographics and long-run capital flows in both theory and in the data. For this purpose, we develop a two region overlapping generations model where countries differ in their population growth and...

Serious research into the causes and implications of an aging population is a relatively recent phenomenon. Though several relevant issues of aging havereceived considerable attention in public and political discussions (especially in European countries and in Japan), the economics profession is...