Debt, Deficits, and Age-Specific Mortality

20 Pages Posted: 31 Jan 2006

See all articles by Hamid Faruqee

Hamid Faruqee

International Monetary Fund (IMF) - Research Department

Date Written: January 2002

Abstract

This paper develops an overlapping agents model with age-specific mortality rates. The analytical framework also nests Blanchard's (1985) perpetual youth model as a special, though perhaps not realistic, case. With age specific mortality rates, youth is fleeting. Using standard hyperbolic functions, the model with fleeting youth is able to closely replicate the empirical relation between age and mortality. The comparative implications for deficit finance are also examined and age-specific mortality is shown to alter the non-Ricardian properties of the model.

Keywords: Ricardian Equivalence, Government Debt, Saving

JEL Classification: E21, E27, E62, H31

Suggested Citation

Faruqee, Hamid, Debt, Deficits, and Age-Specific Mortality (January 2002). IMF Working Paper No. 02/19, Available at SSRN: https://ssrn.com/abstract=879357

Hamid Faruqee (Contact Author)

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

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