CEU Electronic Theses and Dissertations, 2008
| Author | Fazakas, Istvan Levente |
|---|---|
| Title | Children's Consumption and Population Aging: a Realistic OLG Model |
| Summary | One of the uses of OLG models in the relatively recent literature is the study of the effects of population aging, more specifically its repercussions on the pension systems. One of the models dealing with this issue is in Oksanen and Simonovits (2008). Their model characterizes the behavior of the household in a detailed manner, including among other elements, children's consumption, often neglected in the literature. In this paper I present and do a sensitivity analysis of children's consumption for the steady state version of their model. I find that, when children's consumption is accounted for, the consumption path of the household changes from a smooth line to a humped-shape curve. The humped shape appears when children are born in the household and increase its consumption, who later become adults and leave, the consumption returning to its original path. From this I conclude that OLG models, by including children's consumption in their setup, give better results. |
| Supervisor | Simonovits, Andras |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2008/fazakas_istvan.pdf |
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