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The Impact of Aging on Financial Markets and the Economy: A Survey

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Author Info
Barry P. Bosworth () (The Brookings Institution)
Ralph C. Bryant () (The Brookings Institution)
Gary Burtless () (The Brookings Institution)

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Abstract

All major industrial countries will experience significant population aging over the next several decades. In both academic circles and the business press it is widely believed that population aging will have important effects on financial markets because of its expected impact on saving rates and the demand for investment funds. This paper reviews the literature on the macroeconomic and asset market effects of population aging, focusing on four related issues: (a) The impact of population age structure on aggregate household saving; (b) The effect of population aging on investment demand; (c) Evidence on the influence of population age structure on financial market asset prices and returns; and (d) Effects of globalization on our interpretation of the impact of demographic change.

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Paper provided by Center for Retirement Research in its series Working Papers, Center for Retirement Research at Boston College with number 2004-23.

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Length: 62 pages
Date of creation: Oct 2004
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Handle: RePEc:crr:crrwps:2004-23

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Related research
Keywords: aging; saving; investment;

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Find related papers by JEL classification:
E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Axel Börsch-Supan, 2004. "Global Aging: Issues, Answers, More Questions," MEA discussion paper series 04055, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
  2. Erik Lueth, 2008. "Capital Flows and Demographics--An Asian Perspective," IMF Working Papers 08/8, International Monetary Fund. [Downloadable!]
  3. Rose, Andrew K & Supaat, Saktiandi, 2007. "Fertility and the Real Exchange Rate," CEPR Discussion Papers 6312, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. James Poterba, 2004. "The Impact of Population Aging on Financial Markets," NBER Working Papers 10851, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Stefan W. Schmitz, 2005. "Demographic Developments, Funded Pension Provision and Financial Stability," Finance 0510023, EconWPA. [Downloadable!]
    Other versions:
  6. Börsch-Supan, Axel, 2004. "GLOBAL AGING - Issues, Answers, More Questions," Sonderforschungsbereich 504 Publications 07-28, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim. [Downloadable!]
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