Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86454
Authors: 
Bettendorf, Leon
Dewachter, Hans
Year of Publication: 
2007
Series/Report no.: 
Tinbergen Institute Discussion Paper 07-064/2
Abstract: 
In this paper we identify the effects of ageing on the relative price of nontradeables versus tradeables. We consider two cases. In a first specification, age effects only account for short-run dynamics. An alternative case allows for permanent age effects. Estimating the respective cases by means of an ECM on a panel of OECD countries we find significant effects of demographic composition on the relative prices, even after correcting for the standard explanatory variables. Simulations based on population projections of the UN show that ageing might substantially contribute to inflationary pressures in the near future.
Subjects: 
relative price of nontradeables
age-specific effects
productivity differentials
JEL: 
F41
E31
J11
Document Type: 
Working Paper

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