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

  • Barry P. Bosworth

    ()

    (The Brookings Institution)

  • Ralph C. Bryant

    ()

    (The Brookings Institution)

  • Gary Burtless

    ()

    (The Brookings Institution)

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
Handle: RePEc:crr:crrwps:2004-23
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