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.
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Citation
Floden, M and D Domeij (eds) (2004), “DP4644 Population Ageing and International Capital Flows”, CEPR Press Discussion Paper No. 4644. https://cepr.org/publications/dp4644
