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This study analyses the problem of ageing which is currently one of the biggest concerns for central authorities in the Czech Republic. The rapidly changing demographic structure has affected the fiscal policy framework. The focus here is on the economic impact of the ageing phenomenon with respect to the well-being of individuals in the Czech economy. The paper aims to reveal the size of technological progress but also government expenditures necessary to keep the current well-being unaltered to the dynamics of demographic prognosis. The applied method reposes upon a New Keynesian general equilibrium model. This model is disaggregated with the so-called bottom-up approach to capture the nuanced differences among three selected ageing cohorts.

Maintaining the well-being of ageing population in the Czech Republic