Capital flows in an aging world

Zsófia L. Bárány, Nicolas Coeurdacier, Stéphane Guibaud

    Research output: Contribution to journalArticlepeer-review

    Abstract (may include machine translation)

    We investigate the importance of worldwide demographic evolutions in shaping capital flows across countries. Our lifecycle model incorporates cross-country differences in fertility and longevity as well as differences in countries' ability to borrow inter-temporally and across generations through social security. In this environment, global aging triggers uphill capital flows from emerging to advanced economies, while country-specific demographic evolutions reallocate capital towards countries aging more slowly. Our quantitative multi-country overlapping generations model explains a large fraction of long-term capital flows across advanced and emerging countries.

    Original languageEnglish
    Article number103707
    JournalJournal of International Economics
    Volume140
    DOIs
    StatePublished - Jan 2023

    Keywords

    • Aging
    • Household saving
    • International capital flows

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