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Reallocation of Purchasing Power due to Demographic Change - The Case of North Rhine-Westphalia

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  • Britta Stöver

    ()
    (GWS - Institute of Economic Structures Research)

Abstract

The ageing process of populations due to demographic change affects the economy in various ways. The study at hand focuses on the reallocation of income and changes in consumption expenses caused by demographic change. Local disparities on NUTS 3 level are of special interest as the demographic effects can vary considerably between regions depending on their initial position such as population density, age structure, and economic condition. By means of data for the regions of North-Rhine-Westphalia (Germany) a dynamic purchasing power indicator is built that takes the development of different age groups into account and gives a first impression of the effects of ageing on the development of income and consumption behaviour. Regional discrepancies can be identified. While some regions are characterised by a static income situation, i.e. a more or less age independent development, others show distinct increases/decreases in their income caused by their specific structure of demographic change.

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Bibliographic Info

Paper provided by GWS - Institute of Economic Structures Research in its series GWS Discussion Paper Series with number 12-1.

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Length: 25 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:gws:dpaper:12-1

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Keywords: demographic change; purchasing power; age groups; income; consumption;

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  1. Bernd Meyer & Christian Lutz & Peter Schnur & Gerd Zika, 2007. "National Economic Policy Simulations with Global Interdependencies: A Sensitivity Analysis for Germany," Economic Systems Research, Taylor & Francis Journals, vol. 19(1), pages 37-55.
  2. Kempkes, Gerhard, 2010. "Rapid demographic change and the allocation of public education resources: Evidence from East Germany," Discussion Paper Series 1: Economic Studies 2010,16, Deutsche Bundesbank, Research Centre.
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