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While the economic effects of a rising population have been studied by many researchers, several countries will face a declining population in the near future or are even facing it already. How will this affect economic growth and public debt? Arne Hansen analyzes the economic consequences of a declining population using both a model of the closed economy and a model of the small open economy, in order to account for the specific characteristics of open economies. For each model, he discusses the long-run effects and the transitional dynamics.
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Economic growth and public debt under a declining population, Arne Hansen
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- 2013
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