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Population age structure and private consumption in Spain

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  • Begona Eguia
  • Cruz Echevarria

Abstract

In this paper we study the effect of population age distribution upon private consumption expenditure in Spain from 1964 to 1997 using aggregate data. We obtain four main results. First, changes in the population pyramid have substantial effects upon the behaviour of private consumption. Second, the pattern of the coefficients of the demographic variables is not consistent with the simplest version of the life cycle hypothesis. Third, we estimate the impact of the demographic transition upon consumption and find positive values associated with episodes in which the shares of groups of individuals with expenditure levels higher (lower) than the mean increased (decreased). Fourth, the results are robust to alternative specifications for the population age distribution.

Suggested Citation

  • Begona Eguia & Cruz Echevarria, 2001. "Population age structure and private consumption in Spain," International Economic Journal, Taylor & Francis Journals, vol. 18(3), pages 299-319.
    • Handle: RePEc:taf:intecj:v:18:y:2001:i:3:p:299-319
    DOI: 10.1080/1016873042000269975
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    Keywords

    JEL Classification: E20; J19; Aggregate data; demographic heterogeneity; age; consumption;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • J19 - Labor and Demographic Economics - - Demographic Economics - - - Other

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