The Growth Effects of Population Aging in an Economy with Endogenous Technological Progress = The Growth Effects of Population Aging in an Economy with Endogenous Technological Progress

다국어 초록 (Multilingual Abstract)

We address the effects of population aging on economic growth, taring account of its growth-delaying effects, through the reduction of capital accumulation and labor force, and the R□D investment reduction due to its lowered return resulting from reduced marRet size, as well as its growth-promoting effects, through the increase in educational investment due to decrease in the number of child per parent.The policy simulations with a general equilibrium model and its calibration, reflecting the Korean economy, show that: (1) the population aging delays technological progress as well as quantitative economic growth; (2) the government subsidies to R□D and educational investment can partly compensate for the loss in economic growth due to the population aging, but they cannot deal with the problem fundamentally; and (3) the optimal subsidy rates to R□D and education are quite high, ranging from 50 to 70% to R□D and from 70 to 80% to education.