The Impact of Population Ageing in Canada: An OLG General Equilibrium Model Analysis

Abstract

Over the next few decades Canada will be challenged by the issue of population ageing. In this paper, I use an overlapping-generation general equilibrium model to gauge the economic, fiscal, and social security impacts of population ageing during the 21st century. The simulation results demonstrate that population ageing will severely affect the Canadian economy and the standard of life of the Canadians. However, the paper also illustrates that results are critically dependent on the projected demographic variants. To do this I analyze four variants: the high, low, constant, and medium fertility scenarios projected by the United Nations