The central question of this paper is how international trade and specialization are affected by different designs of pension schemes and asymmetric demographic changes. In a model with two goods, two countries and two production factors, we find that countries with a relatively large unfunded...

Trade in goods that are not perfect substitutes can considerably change the predictions of standard neoclassical models about the effects of asymmetric demographic developments. This paper considers a relative decrease in the population size of one country, when countries specialize in the...

In this paper we analyze the effects of asymmetric demographic shocks in a two-region framework with perfectly mobile capital. Regions may differ in their individual thriftiness or the generosity of their social security arrangements. We find that population aging in one region causes...