This paper develops an overlapping-generations (OLG) model to analyze the consequences of demographic structure changes induced by an exogenous shift in the birth rate.We first show that a finite growth rate of the population that maximizes long-run capital per capita exists. Then, we examine...

This paper proposes the use of optimal grouping methods for determining the various age groups within a population. The cutoff ages for these groups, such as the age from wich an individual is considered to be an older person, are then endogenous variables that depend on the entire population...