Population Ageing and Democratic Growth

This paper examines the effects of population aging on economic growth. It begins by presenting and analyzing descriptive statistics on the extent and pace of population aging. The paper then explores the overall effect of population aging on economic growth as well as the effects operating via two main channels through which growth can occur: labor supply and capital accumulation. Accounting effects of population aging  on factor accumulation and economic growth are distinguished from behavioral effects. The final section highlights the important role played by the policy and institutional environment in mediating the economic growth effects of population aging. This section also discusses a variety of demographic, behavioral, and policy forces pertinent to understanding and guiding the effect of population aging on economic growth.

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