The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth

Detalhes bibliográficos
Autor(a) principal: He, Lei
Data de Publicação: 2023
Outros Autores: Wang, Zhengqi
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/27711
Resumo: We evaluate the interaction effects of rising life expectancy and the public pension burden on economic growth by proposing a theoretical model based on an overlapping generations framework. Testable implications from the theoretical model are that the public pension burden impairs the positive effect of increased life expectancy on the aggregate savings rate in the same period and reduces the positive effect of life expectancy on the economic growth rate in the next period. Meanwhile, rising life expectancy intensifies the negative effect of the public pension burden on the aggregate savings rate and economic growth. A panel data set on OECD countries is used to provide empirical support for these predictions. Our results reveal the complicated relationships among rising life expectancy, a high public pension burden, and growth. It would be valuable for the government sector to adjust its spending to deal with fiscal pressure from public pensions.
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spelling The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growthPublic pension burdenLife expectancyInteraction effectsEconomic growthWe evaluate the interaction effects of rising life expectancy and the public pension burden on economic growth by proposing a theoretical model based on an overlapping generations framework. Testable implications from the theoretical model are that the public pension burden impairs the positive effect of increased life expectancy on the aggregate savings rate in the same period and reduces the positive effect of life expectancy on the economic growth rate in the next period. Meanwhile, rising life expectancy intensifies the negative effect of the public pension burden on the aggregate savings rate and economic growth. A panel data set on OECD countries is used to provide empirical support for these predictions. Our results reveal the complicated relationships among rising life expectancy, a high public pension burden, and growth. It would be valuable for the government sector to adjust its spending to deal with fiscal pressure from public pensions.SpringerRepositório da Universidade de LisboaHe, LeiWang, Zhengqi2023-05-04T13:33:01Z20232023-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/27711engHe, Lei e Zhengqi Wang (2023). "The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth". Portuguese Economic Journal, 22(2):229-250. https://doi.org/10.1007/s10258-022-00208-z1617-982X10.1007/s10258-022-00208-zmetadata only accessinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-05-07T01:31:04Zoai:www.repository.utl.pt:10400.5/27711Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:50:58.381570Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth
title The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth
spellingShingle The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth
He, Lei
Public pension burden
Life expectancy
Interaction effects
Economic growth
title_short The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth
title_full The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth
title_fullStr The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth
title_full_unstemmed The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth
title_sort The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth
author He, Lei
author_facet He, Lei
Wang, Zhengqi
author_role author
author2 Wang, Zhengqi
author2_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv He, Lei
Wang, Zhengqi
dc.subject.por.fl_str_mv Public pension burden
Life expectancy
Interaction effects
Economic growth
topic Public pension burden
Life expectancy
Interaction effects
Economic growth
description We evaluate the interaction effects of rising life expectancy and the public pension burden on economic growth by proposing a theoretical model based on an overlapping generations framework. Testable implications from the theoretical model are that the public pension burden impairs the positive effect of increased life expectancy on the aggregate savings rate in the same period and reduces the positive effect of life expectancy on the economic growth rate in the next period. Meanwhile, rising life expectancy intensifies the negative effect of the public pension burden on the aggregate savings rate and economic growth. A panel data set on OECD countries is used to provide empirical support for these predictions. Our results reveal the complicated relationships among rising life expectancy, a high public pension burden, and growth. It would be valuable for the government sector to adjust its spending to deal with fiscal pressure from public pensions.
publishDate 2023
dc.date.none.fl_str_mv 2023-05-04T13:33:01Z
2023
2023-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/27711
url http://hdl.handle.net/10400.5/27711
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv He, Lei e Zhengqi Wang (2023). "The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth". Portuguese Economic Journal, 22(2):229-250. https://doi.org/10.1007/s10258-022-00208-z
1617-982X
10.1007/s10258-022-00208-z
dc.rights.driver.fl_str_mv metadata only access
info:eu-repo/semantics/openAccess
rights_invalid_str_mv metadata only access
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Springer
publisher.none.fl_str_mv Springer
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
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reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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