We analyze steady state and out-of-steady-state effects of the transition in adult longevity on the national saving rate using historical data and international panel data. The rise in adult life expectancy has a large and statistically significant effect on aggregate saving. The effects have been especially pronounced in East Asia because its mortality transition was very rapid. Gains in life expectancy are much more important than declines in child dependency. Population aging may not lead to lower saving rates in the future if life expectancy and the duration of retirement continue to increase.
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| http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2128687 | PMC |
| http://dx.doi.org/10.1016/j.worlddev.2006.09.002 | DOI Listing |
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