Debt, Deficits, and Age-Specific Mortality
20 Pages Posted: 31 Jan 2006
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: Suggested Citation
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