Old Folks and Spoiled Brats:Why the baby Boomers' Saving Crisis Need Not be that Bad

We study the impact of an anticipated "baby boom" in an overlapping generations economy.The rise of the working population lowers the wage, and the high demand for assets causes a rise in the price of capital which will be reversed when the baby boomers leave the work-force.However, the swings in factor prices are substantially dampened if we allow for more than two generations, endogenous labor supply, and convex capital adjustment costs.This is mainly due to the intertemporal shifts in labor market participation that can be observed if agents work for more than one period.Optimal saving and labor supply decisions of the baby boomers' preceding and subsequent generations partly offset the impact of the unfavorable demographic shock.Accordingly, the impact of a baby boom on the welfare of different generations crucially depends on the elasticity of labor supply

Hollins Columns (1956 Nov 8)

Table of Contents: Dr. Beach is Chapel Speaker Charles A. Baylis Speaks Thursday Dr. Dallenbach To Talk Nov. 13 Blue Ridge Psych. Meeting Attended Grapheon Takes in Six New Members Eleven Seniors Selected For National Who\u27s Who Canadian Players Stage Peer Gynt Viva Zapata Shown Here Choir Members Sing In All-State Choir Spoiled Brats or Leaders? Seniors Formulate Policy Faculty Symposium On H-Bomb Is Held American Mid-East Policy Fails Movies in Roanoke Young Democrats Are Active in Work Employment Tests To Be Given Dec. 1 Halloween Party Was Big Success Prof. Mary V. Long Attends Conference Lamenthttps://digitalcommons.hollins.edu/newspapers/1640/thumbnail.jp

Emerge

University of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/156346/1/Molly_Bokor_Final_Thesis_Paper_.pd

Nightly Feats of Survival

The infinite sky’s shrunk into a rectangle of wan light, the earth cradling the captive like a clam clasps its pearl

Old folks and spoiled brats : Why the baby boomers' saving crisis need not be that bad

We study the impact of an anticipated "baby boom" in an overlapping generations economy. The rise of the working population lowers the wage, and the high demand for assets causes a rise in the price of capital which will be reversed when the baby boomers leave the work-force. However, the swings in factor prices are substantially dampened if we allow for more than two generations, endogenous labor supply, and convex capital adjustment costs. This is mainly due to the intertemporal shifts in labor market participation that can be observed if agents work for more than one period. Optimal saving and labor supply decisions of the baby boomers' preceding and subsequent generations partly offset the impact of the unfavorable demographic shock. Accordingly, the impact of a baby boom on the welfare of different generations crucially depends on the elasticity of labor supply.baby boom; asset prices; labour market adjustments