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The economics of longevity – An introduction

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  • Scott, Andrew J.

Abstract

Global life expectancy now stands at 71 years compared with 30 years in 1870. This fact increases the need to understand how we age and how that impacts our economic decision making. It also raises the issue of how we should change our life cycle behaviours, policies and institutions to adapt to these longer lives. The combination of these two factors leads to a very different focus from the traditional interest of an ageing society and its focus on changes in the age distribution of society. It emphasises the need to understand a longevity society and changes in how we age. Given the importance of intertemporal decision making and the life cycle model in economics the implications of longevity for economic research offers rich pickings across a range of areas covering health, human capital, employment, financial decisions and macroeconomics. Understanding the changes in how we age in response to longer lives and identifying the channels to ensure that longer lives are welfare enhancing should be a fruitful and important area for research.

Suggested Citation

  • Scott, Andrew J., 2023. "The economics of longevity – An introduction," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).
    • Handle: RePEc:eee:joecag:v:24:y:2023:i:c:s2212828x22000718
    DOI: 10.1016/j.jeoa.2022.100439
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    Cited by:

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    2. Roch-Dupré, David & Aracil, Elisa & Calvo-Bascones, Pablo, 2024. "Monitoring socioeconomic readiness for the demographic transition: Introducing the Senior Economy Tracker," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 430-443.
    3. Pablo Garcia-Sanchez & Olivier Pierrard, 2025. "The Rich Live Longer: A Model of Income and Health Inequalities," LIDAM Discussion Papers IRES 2025016, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. Pablo Garcia Sanchez & Olivier Pierrard, 2025. "When health affects income (and vice versa): Policy transmission in a heterogeneous agent life-cycle model," BCL working papers 200, Central Bank of Luxembourg.
    5. Mădălina-Gabriela ANGHEL & Elena IONIȚĂ, 2025. "Pensions under pressure: economic and demographic drivers of Romania’s public retirement system," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(644), A), pages 133-148, Autumn.
    6. Anghel Madalina-Gabriela & Strijek Denis-Arthur, 2025. "The Labour Market In Romania Under The Pressure Of Demographic Ageing: Analysis Of The Employment Rate And Old-Age Dependency," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 35-45, October.

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