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Population age structure, asset price, and financial stability

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  • Gang Li
  • Ehsan Elahi
  • Xingshuai Wang

Abstract

Based on the data collected from 32 countries, the empirical test is conducted by constructing the financial stability index FSCI (Financial Stability Conditions Index). Results found that the changes in population age structure will affect financial stability, but the effects of different age structures are inconsistent, and there is country heterogeneity. The laborers are the main force in financial markets and significantly contribute to financial stability. The elderly population is also conducive to long‐term financial stability due to their low‐risk attitude. Results also confirmed that a change in population age structure affects household asset allocation prices.

Suggested Citation

  • Gang Li & Ehsan Elahi & Xingshuai Wang, 2023. "Population age structure, asset price, and financial stability," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2041-2056, June.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:4:p:2041-2056
    DOI: 10.1002/mde.3799
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    1. Yang, Cheng & Wang, Jie & Liu, Xiaoyu, 2024. "What affects the financial asset allocation of the elderly? From the perspective of financial literacy and risk attitude," Finance Research Letters, Elsevier, vol. 63(C).

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