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The Impact Of The Aging Population On The Sustainability Of Public Finances

Author

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  • Amalia Cristescu

    (Bucharest University of Economic Studies)

Abstract

Significant demographic changes have been observed in most countries of the world in recent decades. The aging phenomenon of the population leads to significant changes in the age structure of the workforce. These changes will probably have profound influences on economic activity, both internally and internationally. However, due to the size of public pension and health spending, the net impact of these changes will lead to an increase in government spending that implies a decline in public economies, as long as fiscal policies remain unchanged. Another concern at global level is that the aging of the population can lead to a reduction of savings in the private environment, which, in turn, leads to a reduction of investments and real production and thus convergence is affected. The aging of the population represents a long-term challenge at the level of the European states in the light of the fiscal pressure on the social insurance system and implicitly of the convergence indicators - the budget deficit and the public debt. This paper aims to identify the factors that significantly influence the risk of poverty after retirement age and the impact on the convergence process using a panel date analysis.

Suggested Citation

  • Amalia Cristescu, 2019. "The Impact Of The Aging Population On The Sustainability Of Public Finances," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 13(2), pages 52-67, DECEMBER.
    • Handle: RePEc:rrs:journl:v:13:y:2019:i:2:p:52-67
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    References listed on IDEAS

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    Cited by:

    1. Florin Cornel DUMITER & Ștefania Amalia NICOARĂ & Marius BOIȚĂ & Erika LOUČANOVÁ & Katarina Repkova STOFKOVA, 2024. "Empirical Study Regarding the Central and Eastern European Countries’ Soundness of Pension Systems. Triangle Assessment: Social, Economic, and Financial Features of Pension Systems," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 105-127, December.
    2. Zapji Ymélé Aimé Philombe, 2022. "Interest Charges and the “Said†Ageing-related Expenditures: A Study of OECD Countries," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 15(3), pages 7-23, December.

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    Keywords

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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