DP4644 Population Ageing and International Capital Flows
|Author(s):||David Domeij, Martin Flodén|
|Publication Date:||September 2004|
|Keyword(s):||current account, demographics, Feldstein-Horioka puzzle, international capital mobility|
|JEL(s):||E22, F21, F41, F47|
|Programme Areas:||International Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=4644|
We use the neoclassical growth framework to model international capital flows in a world with exogenous demographic change. We compare model implications and actual current account data and find that the model explains a small but significant fraction of capital flows between OECD countries, in particular after 1985.