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Demographic change, relative factor prices, international capital flows, and their differential effects on the welfare of generations

Ludwig, Alexander; Krueger, Dirk; Börsch-Supan, Axel - 2007

Demographic change has differential impacts on the welfare of current and future generations. In a simple closed economy, aging -- a relative scarcity of young workers -- increases wages, increasing the welfare of the young. At the same time, population aging will reduce rates of return to...