Population aging and fiscal sustainability: Nonlinear evidence from Europe

Cho, Dooyeon; Lee, Kyung-woo

doi:10.1016/j.jimonfin.2022.102665

Cited by 24 publications

(6 citation statements)

References 28 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Chen Q et al [25] further argued that the most direct fiscal expenditure items associated with population aging are fiscal expenditures on pensions and healthcare, and in the empirical analysis, the mediating effect of fiscal spending on old age and healthcare is significant. This situation has also been verified in Europe, where Cho D and Lee K) [26] found, using data from several European countries, that public spending on pensions and healthcare showed a significant positive relationship with the rate of population aging, and that population aging significantly reduced fiscal sustainability through these public expenditures. Synthesizing the above studies, to cope with population aging, some literature suggests directional paths, while the mainstream literature specifies two specific paths, namely social security and healthcare.…”

Section: The Path Of the Role Of Population Aging On Fiscal Sustainab...mentioning

confidence: 64%

A Study of the Impact of Population Aging on Fiscal Sustainability in China

Liu

Zhao

2023

Sustainability

View full text Add to dashboard Cite

China has entered a deeply aging society, and the aging population poses a significant public risk to fiscal sustainability. In this regard, researchers have conducted a large number of studies, but the fiscal sustainability indicators used in the existing literature are not scientific enough, the sample data are too macro, and the heterogeneity analysis is not comprehensive enough. This paper innovatively constructs fiscal sustainability indicators based on data from 4 municipalities directly under the central government, 8 provincial capitals, and 88 prefecture-level cities in China from 2010–2019, and analyzes the impact of population aging on fiscal sustainability in eastern, central, western, and multi-level cities in China, using methods such as two-way fixed-effects models. The study finds that (1) fiscal sustainability is significantly hampered by population aging; that is, the more aging there is, the less fiscal sustainability there is. (2) The inhibitory effect of population aging on fiscal sustainability is greater in developed regions compared to backward regions. Compared to prefecture-level cities, provincial cities (including municipalities and provincial capitals) are much more negatively impacted by population aging on fiscal sustainability. (3) The paths through which population aging inhibits fiscal sustainability are healthcare expenditures and social security employment expenditures. The policy recommendations put forward in this paper are to raise the fertility rate, protect the fiscal expenditures of developed regions and provincial capitals to deal with population aging, and increase the effectiveness of the use of funds for medical and health expenditures and social security employment expenditures. The conclusions and policy recommendations drawn in this paper have a positive effect on China’s response to the fiscal sustainability problems caused by an aging population.

show abstract

Section: The Path Of the Role Of Population Aging On Fiscal Sustainab...mentioning

confidence: 64%

A Study of the Impact of Population Aging on Fiscal Sustainability in China

Liu

Zhao

2023

Sustainability

View full text Add to dashboard Cite

show abstract

“…Bohn's method of testing fiscal sustainability involves estimating the marginal responsiveness of the budget surplus to various fiscal, macroeconomic, and other variables. With this approach, fiscal sustainability can be confirmed based on the positive marginal responsiveness of the budget balance to changes in public debt and other studied variables (Cho & Lee, 2022). In this research, we will limit ourselves to the approach of testing the stationarity and cointegration of various fiscal variables.…”

Section: Methodology and Description Of The Datasetmentioning

confidence: 99%

Artificial Intelligence in Retail Stores: Evaluation of Readiness to Adopt AI Technologies Among Consumers

Kolar

2024

Challenges in the Turbulent Economic Environment and Organizations’ Sustainable Development

View full text Add to dashboard Cite

This research aims to explore consumer attitudes toward the incorporation of Artificial Intelligence (AI) in physical retail settings, specifically examining how prior AI experiences, perceived risks, consumer self-efficacy in AI usage, and gender differences influence their readiness to embrace AI technologies in retail environments. Employing a quantitative cross-sectional survey methodology, the study gathered data from 243 consumers knowledgeable about AI who have engaged in shopping activities within physical stores over the past year. Through descriptive statistics, Pearson's correlation, and t-tests, the analysis reveals a direct positive correlation between consumers' previous AI interactions and their openness to AI in retail. Conversely, perceived risks are found to affect their willingness to engage with AI technologies negatively. The research is geographically limited to Slovenia, which may restrict the applicability of its findings to other contexts. The study emphasizes the potential for increasing consumer acceptance of AI in retail through the introduction of strategic technology and the emphasis on security features. Contributing original insights into the dynamics of consumer perceptions of AI within the physical retail sector, this work offers valuable implications for retailers aiming to optimize AI integration strategies to mitigate consumer apprehensions and accommodate diverse demographic preferences.

show abstract

“…For example, in the European Union (EU), the old-age dependency ratio (the ratio of the population aged 65 or over to the population aged 15-64) nearly doubled from 15.2% in 1960 to 29.9% in 2016. Maintaining fiscal sustainability will be extremely difficult in the face of such a significant demographic shift [13].…”

Section: Literature Reviewmentioning

confidence: 99%

The cost of aging: Economic growth perspectives for Europe

et al. 2023

View full text Add to dashboard Cite

This study explores the causal relationship between the economy and the elderly population in 15 European countries. The economy was measured by the Per Capita Gross Domestic Product growth rate, while the population aged above 65 as a percentage of the total was considered the elderly population. The data were obtained from a time series dataset published by the World Bank for six decades from 1961 to 2021. The Granger causality test was employed in the study to analyse the impact between the economy and the elderly population. An alternate approach, wavelet coherence, was used to demonstrate the changes to the relationship between the two variables in Europe over the 60 years. The findings from the Granger causality test indicate a unidirectional Granger causality from the economy to the elderly population for Luxembourg, Austria, Denmark, Spain, and Sweden, while vice versa for Greece and the United Kingdom. Furthermore, for Belgium, Finland, France, Italy, Netherlands, Norway, Portugal, and Turkey, Granger causality does not exist between the said variables. Moreover, wavelet coherence analysis depicts that for Europe, the elderly population negatively affected the economic growth in the 1960s, and vice versa in the 1980s.

show abstract

Population aging and fiscal sustainability: Nonlinear evidence from Europe

Cited by 24 publications

References 28 publications

A Study of the Impact of Population Aging on Fiscal Sustainability in China

A Study of the Impact of Population Aging on Fiscal Sustainability in China

Artificial Intelligence in Retail Stores: Evaluation of Readiness to Adopt AI Technologies Among Consumers

The cost of aging: Economic growth perspectives for Europe

Contact Info

Product

Resources

About