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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.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/1016873042000269975
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal International Economic Journal.

Volume (Year): 18 (2001)
Issue (Month): 3 ()
Pages: 299-319

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Handle: RePEc:taf:intecj:v:18:y:2001:i:3:p:299-319

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Related research

Keywords: JEL Classification: E20; J19; Aggregate data; demographic heterogeneity; age; consumption;

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