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The extent of the demographic changes is dramatic especially in some Asian and European countries. This paper investigates the effect of aging on global asset markets and asset returns, focusing on markets for productive capital, and especially on interactions between European and Asian economic development. Aging has complex effects on the markets for real capital. If elderly people save less than younger people, interest rates will increase. At the same time, however, the younger generation becomes smaller, which reduces the demand for new investment. The equilibrium effect is thus uncertain. Our multicountry computational equilibrium model delivers a subtle picture: there will be some decline in the return from productive capital, but it is relatively small. We find noticeable interaction effects between labor market and pension reforms in Europe on the one hand, and the demographic and economic developments in Asia, especially India and China, on the other hand. [ABSTRACT FROM AUTHOR]

Trade openness, high savings rates, human capital accumulation, and macroeconomic policy only accounted for part of the 1965–1990 growth performance in East Asia. Subsequently, demographic change was shown to be a missing factor in explaining the East Asian growth premium. Since 1990, East Asia has undertaken major economic reforms in response to financial crises and other factors. We reexamine the role of the demographic transition in contributing to cross-country differences in economic growth through to 2005, with a particular focus on East Asia. We highlight the need for policy to offset potential negative effects of aging populations in the future. [ABSTRACT FROM AUTHOR]

The article offers the author's comments on the paper "Demographic Change and Economic Growth in Asia," by D. E. Bloom and J. E. Finlay, published in this issue of the journal. The author states that the model derived by Bloom and Finlay assumes that the per capita growth is a process of convergence toward the steady-state level of income per worker. The author thinks that it is difficult to envisage the steady-state level of income per worker, as some variables used are time variant.

The article offers the author's comments on the paper "Demographic Change and Economic Growth in Asia," by D. E. Bloom and J. E. Finlay, published in this issue of the journal. The author focuses on the demographic variables used by Bloom and Finlay in developing a convergence model, including the schooling variable and the working-age population variable. The author thinks that there is a wide range of country-specific factors that will affect individual growth rates in Asia.

The article offers the author's comments on the paper "Demographic Change and Asian Dynamics: Social and Political Implications," by T. Inoguchi, published in this issue of the periodical. The author states that the Asian countries can enjoy the demographic bonus if the economic growth, employment creation and human resource development can absorb the increasing numbers of the labor force. The author thinks that with growing inequalities in Thailand and China, social turmoil has emerged.