search query: @indexterm CAPITAL FLOWS / total: 23
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| Author: | Floden, M. |
| Title: | Public saving and policy coordination in aging economies |
| Journal: | Scandinavian Journal of Economics
2003 : VOL. 105:3, p. 379-400 |
| Index terms: | Demography Investment Savings Policy Ageing Taxation Capital flows Theories Models International |
| Language: | eng |
| Abstract: | In the coming decades, the share of people of working age will fall significantly in most developed countries. According to optimal taxation theory, public debts should be reduced before the baby-boom generation retires. In this study, it is found that if debts are instead maintained at current levels, welfare may be reduced substantially in countries with a large public sector and/or a large demographic change. Since population aging will be less dramatic in the United States than in Europe and Japan, capital will move from Europe and Japan to the U.S. These capital movements will facilitate the U.S. demographic transition but aggravate the transition in most European countries. |
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