Dissertation

Table 2.9: The impact of population aging on the projected retirement benefits under different values of leisure share in total time endowment.

l_W = 0.575 l_W = 0.6458 Case 1 32.51% 32.51% Case 2 22.23% 22.19% Case 3 23.79% 25.09% Case 4 19.61% 19.91%

earlier analysis, I also report the two intermediate cases (Cases 2 and 3) under the different

l_W -values. The table reveals a pattern very similar to the one observed in the initial baseline.

The smallest decline in the projected benefits occurs under Case 4, and the magnitude of

the decline is also very similar. Moreover, the declines in benefits are roughly comparable

when either of the two mechanisms is not accounted for.

To examine how the demographic change affects household behavior and factor prices

under different values of the leisure share parameter, I report in Table 2.10 the values

of the total capital stock, retirement age, labor supply and the factor prices in the post-

demographic change steady states under both l_W = 0.575 and 0.6458. The table shows that