"This project integrates into modern dynamic macroeconomics a biologically founded process of individual ageing, i.e. ageing understood as the gradual deterioration of the functioning of body and mind. The EU member countries will be increasingly populated by older people. Our project investigates theoretically and quantitatively how ageing affects their health and productivity. Using models of endogenous economic growth we assess how the feedback effects of ageing on investment and education affect long-run economic growth, competitiveness, and welfare of the EU member countries. With multi-country models we analyze how ageing influences human capital formation and migration flows in Europe. Using models of optimal retirement decisions we investigate how ageing impacts on the contribution and employability of older workers and how this feeds back to issues of intergenerational solidarity. With models of endogenous R&D we explore how ageing interacts with technological progress and assess how ageing will affect the EU's capacity to innovate and to develop. We investigate how ageing interacts with health demand and supply and how this feeds back to the macroeconomy. We assess whether the EU's market economies and public sectors provide too much or too little health care."