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dc.contributor.authorCreedy, Johnen_US
dc.contributor.authorGuest, Rossen_US
dc.date.accessioned2017-05-03T11:35:33Z
dc.date.available2017-05-03T11:35:33Z
dc.date.issued2008en_US
dc.date.modified2011-06-13T23:00:01Z
dc.identifier.issn0264-9993en_US
dc.identifier.doi10.1016/j.econmod.2007.07.007en_AU
dc.identifier.urihttp://hdl.handle.net/10072/22305
dc.description.abstractThis paper examines the optimal path of consumption over time in the context of population ageing. Older age groups are considered to have relatively greater 'needs', resulting for example from additional health costs. These differences give rise to the concept of the 'equivalent number of persons', as distinct from the population size. Emphasis is given to the difference between a framework involving a representative agent and one in which plans are made by a social planner. The precise conditions under which consumption growth paths are the same under the representative agent and the social planner are established. This equivalence is found to hold only in the case where the social planner's value judgements are such that individuals are considered to be the appropriate unit of analysis. An alternative assumption, in which equivalent persons are regarded as the appropriate units, is found to give rise to a different optimal consumption path. Numerical examples demonstrate the relative orders of magnitude for a range of parameter values. The differences are found to be potentially important. The choice of appropriate consumption units - individuals or equivalent persons - is far from arbitrary since it involves possibly conflicting value judgements. This choice has implications for policies designed to influence the optimal saving rate, such as superannuation policy and the fiscal balance.en_US
dc.description.peerreviewedYesen_US
dc.description.publicationstatusYesen_AU
dc.languageEnglishen_US
dc.language.isoen_AU
dc.publisherElsevieren_US
dc.publisher.placeAmsterdamen_US
dc.publisher.urihttp://www.elsevier.com/locate/econbaseen_AU
dc.relation.ispartofstudentpublicationNen_AU
dc.relation.ispartofpagefrom485en_US
dc.relation.ispartofpageto498en_US
dc.relation.ispartofissue3en_US
dc.relation.ispartofjournalEconomic Modellingen_US
dc.relation.ispartofvolume25en_US
dc.rights.retentionYen_AU
dc.subject.fieldofresearchcode340208en_US
dc.titlePopulation Ageing and Intertemporal Consumption: Representative Agent versus Social Planneren_US
dc.typeJournal articleen_US
dc.type.descriptionC1 - Peer Reviewed (HERDC)en_US
dc.type.codeC - Journal Articlesen_US
gro.date.issued2008
gro.hasfulltextNo Full Text


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