Wednesday, October 11, 2017

Dynamic equilibrium: US prime age population

There was a tweet saying that the US prime age population (25-54) hadn't increased in a decade. I decided to get a handle on the context in terms of the dynamic equilibrium model:

It's true this population measure hasn't increased in a decade, but that is more a measure of the size of the shock due to the recession (leading to e.g. reduced immigration) than anything special about today. In fact, the growth rate today is consistent with twenty-first century prime age population growth.

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Also, try to avoid the use of dollar signs as they interfere with my setup of mathjax. I left it set up that way because I think this is funny for an economics blog. You can use € or £ instead.