Economic Policy in a Demographically Divided World

1. Introduction.- 1.1 Stylised facts.- 1.1.1 Ageing and demographic transition.- 1.1.2 Economic development.- 1.2 Methodology.- 1.3 Research questions and outline.- 2. Elements of a Theory.- 2.1 Maximum principle of choice.- 2.2 Social welfare and individual choice.- 2.3 The theory of optimal economic growth.- 2.3.1 The model.- 2.3.2 Comparative statics.- 2.4 Summary.- Appendix 2A: Comparative statics for the one-sector growth model.- 3. Optimal Economic Growth in a Demographically Divided World.- 3.1 The two-region model.- 3.2 Comparative statics.- 3.3 Development aid in a demographically divided world.- 3.4 Summary.- 4. International Debt in a Demographically Divided World.- 4.1 A two-country world model.- 4.2 Demographic shocks and optimal capital flows.- 4.2.1 Transitory shocks.- 4.2.2 Permanent shocks.- 4.3 Endogenous time preference.- 4.3.1 The Uzawa model of time preference.- 4.3.2 A two-country world economy.- 4.3.3 Comparative statics.- 4.4 Summary.- Appendix 4A: Comparative statics for the model with endogenous time preference formation.- 5. International Migration, Economic Policy and Human Capital Accumulation.- 5.1 Human capital accumulation in autarky.- 5.2 Comparative statics in autarky.- 5.3 International migration and economic policy.- 5.3.1 Demographics.- 5.3.2 Optimal immigration.- 5.4 A brain drain in the ‘real’ world.- 5.5 Summary.- Appendix 5A: Comparative statics for the model of human capital accumulation.- 6. On the Relevance of the Ricardian Theory of Public
Finance to Conditions of Demographic Change.- 6.1 The immortal consumer model.- 6.1.1 The immortal representative agent econom.- 6.1.2 Fiscal policy: temporally balanced budget.- 6.1.3 Fiscal policy: intertemporally balanced budget.- 6.2 The breakdown of the immortal consumer.- 6.2.1 Are we one dynasty?.- 6.2.2 International migration.- 6.2.3 Uncertain lifetime.- 6.2.4 Population growth uncertainty.- 6.2.5 Capital market imperfections.- 6.3 Lessons in Ricardian public finance.- 6.4 Summary.- 7. Dynamic Optimal Taxation and Endogenous Public Spending.- 7.1 Should a government smooth tax rates?.- 7.2 A simple model of the representative family.- 7.3 Dynamic fiscal policy.- 7.3.1 Second-best fiscal policy problem.- 7.3.2 First-best fiscal policy problem.- 7.4 Fiscal policy in an interdependent world economy.- 7.4.1 Time consistency.- 7.4.2 Cooperation versus noncooperation.- 7.5 Summary.- 8. Economic Policy in a Demographically Divided World.- 8.1 Economic policy in a demographically divided world.- 8.2 Qualifications and possible extensions.- 8.3 Caveat Emptor.- References.- Author Index.