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POPULATION AGING AND INTERNATIONAL CAPITAL FLOWS *
Author(s) -
Domeij David,
Flodén Martin
Publication year - 2006
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/j.1468-2354.2006.00404.x
Subject(s) - economics , capital flows , capital (architecture) , growth model , population , monetary economics , econometrics , macroeconomics , microeconomics , geography , demography , archaeology , sociology , profit (economics)
We use the neoclassical growth framework to model international capital flows in a world with exogenous demographic change. We compare model implications and actual current account data and find that the model explains a small but significant fraction of capital flows between OECD countries, in particular after 1985.