Nicolas Coeurdacier, SciencesPo. "Capital Flows in an Aging World"
Department seminar. Nicolas Coeurdacier is an Associate Professor of Economics at SciencesPo. He will present the paper: "Capital Flows in an Aging World". Co-authored by Z. Barany and S. Guibaud.
We investigate the importance of worldwide demographic evolutions in shaping capital
ﬂows across countries and over time. Our lifecycle model incorporates cross-country
diﬀerences in fertility and longevity as well as diﬀerences in countries’ ability to borrow
inter-temporally and across generations through social security. In this environment,
global aging triggers uphill capital ﬂows from emerging to advanced economies, while
country-speciﬁc demographic evolutions reallocate capital towards countries aging more
slowly. Our quantitative multi-country overlapping generations model explains a large
fraction of long-term capital ﬂows across advanced and emerging countries.