Global Demographic Trends, Capital Mobility, Saving and Consumption in Latin America and the Caribbean (LAC)

Produced by: 
Inter-American Development Bank
Available from: 
May 2015
Paper author(s): 
Orazio P. Attanasio
Andrea Bonfatti
Sagiri Kitao
Guglielmo Weber
Topic: 
Globalization - Trade
Microeconomics - Competition - Productivity
Year: 
2015

This paper studies the effect of demographic transitions on the economy of Latin America and the Caribbean (LAC). The paper builds a model of multi-regions of the world and derives the path of macroeconomic variables including aggregate output, capital, labor and the saving rate as economies face a rapid shift in demographics. The timing and the extent of the demographic transition differ across regions. The model is simulated under both closed economy and open economy assumptions to quantify the roles played by factor mobility across regions in shaping capital accumulation and equilibrium factor prices.

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Research section: 
Latest Research
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