Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19144
Authors: 
Grafenhofer, Dominik
Jaag, Christian
Keuschnigg, Christian
Keuschnigg, Mirela
Year of Publication: 
2006
Series/Report no.: 
CESifo Working Paper 1680
Abstract: 
The paper develops an overlapping generations model with probabilistic aging of households. We define age as a set of personal attributes such as earnings potential, health and tastes that are characteristic of a person's position in the life-cycle. In assuming a limited number of different states of age, we separate the concepts of age and time since birth. Agents may retain their age characteristics for several periods before they move with a given probability to another state of age. Different generations that share the same age characteristics are aggregated analytically to a low number of age groups. The probabilistic aging model thus allows for a very parsimonious yet rather close approximation of demographic structure and life-cycle differences in earnings, wealth and consumption. Existing classes of overlapping generations models follow as special cases.
Subjects: 
overlapping generations
aging
demographics
life-cycle earnings
JEL: 
J21
H55
D91
D58
Document Type: 
Working Paper

Files in This Item:
File
Size
356.16 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.