This paper presents a new method to clarify intergenerational effects of the demographic change
in industrialized countries, i.e., the trend of aging.
Recognized effects of aging are twofold; a disincentive effect and a product variety effect.
The results are consistent with the empirical findings in Cutler et al.(1990).
With the evidence, our model predicts that "diminished fertility represents a problem rather than an opportunity,"
and that "diminished mortality represents an opportunity rather than a problem."
Abstract:
JEL Classification : J11, J24, L16