Publication

This paper explores the impact of demographic change in a series of increasing complex economics models. The models range from a simple two-country symmetric theoretical model to an empirically based 4-country MSG3 model, which represents the characteristics of Japan, the US, and the rest of the OECD nations and the world. When using more complex models, the authors find that although the basic insights from simplest theoretical models continue to hold, the quantitative results change significantly when they focus particularly on the demographic shock in a model representing the empirical characteristics of Japan.