Studying The Consumption Effects Of Age Structure Changing With Adjusted Overlapping Generation Model

As we now know, Chinese population is the biggest in the world. It was up to 1.3 billion in the fifth census in 2000, and which was 0.24 billion more than that in India, the second biggest population country. The population is still booming. So population problem is important to our country, especially nowadays with population aging and the difficult to find a job. The government must take effective measures to solve these problems.This paper is studying the consumption effects of population changing. It bases on the overlapping generation model of He JuHuang professor, mainly considering the young, who can't produce and only consume after adjusting. And taking the initial period as the student period, also called consumptive period, and the consumption decision-making is up to the early generation (the parents), which is also the most OLG model ignored.After establishing the corresponding model, this paper make dynamic simulation on the base of the initial values, then discuss the influence of the population changing .We can find the population changing effects the saving rate, the economy increasing-rate and so on. There are some suggestions to the government: reducing the years of receiving high-education, expanding the ways of obtaining employment, and carrying out the combination of endowment insurance and traditional ways to take care of the-aged.