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Probabilistic Aging

Author: Dominik Grafenhofer; et al
Publisher: München : CESifo, Center for Economic Studies & Ifo Institute for economic research, 2006.
Series: CESifo working paper series, 1680.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Database:WorldCat
Summary:
The paper develops an overlapping generations model with probabilistic aging of households. We define age as a set of personal attributes such as earnings potential, health and tastes that are characteristic of a person's position in the life-cycle. In assuming a limited number of different states of age, we separate the concepts of age and time since birth. Agents may retain their age characteristics for several  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Dominik Grafenhofer; et al
OCLC Number: 429414532
Description: 1 online resource (Text.)
Series Title: CESifo working paper series, 1680.
Responsibility: Dominik Grafenhofer ... [et al.].

Abstract:

The paper develops an overlapping generations model with probabilistic aging of households. We define age as a set of personal attributes such as earnings potential, health and tastes that are characteristic of a person's position in the life-cycle. In assuming a limited number of different states of age, we separate the concepts of age and time since birth. Agents may retain their age characteristics for several periods before they move with a given probability to another state of age. Different generations that share the same age characteristics are aggregated analytically to a low number of age groups. The probabilistic aging model thus allows for a very parsimonious yet rather close approximation of demographic structure and life-cycle differences in earnings, wealth and consumption. Existing classes of overlapping generations models follow as special cases.

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