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.