HOW DEMOGRAPHY AFFECTS THE ECONOMY – IMPACT OF POPULATION AGEING ON INFLATION
HOW DEMOGRAPHY AFFECTS THE ECONOMY – IMPACT OF POPULATION AGEING ON INFLATION
Author(s): Paulina BroniatowskaSubject(s): Supranational / Global Economy, Evaluation research, Demography and human biology, Socio-Economic Research
Published by: Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
Keywords: population ageing; inflation; demography;
Summary/Abstract: The motivation of this paper is to check whether inflation is linked to the population age structure. To check this hypothesis, a panel data model is used. We regress the changes in CPI on a set of macroeconomic variables. The results of the estimations suggest that there may be a relation between demography and low-frequency inflation. A larger old-age dependency ratio is correlated with lower inflation. This may confirm some of the previous empirical findings that ageing is deflationary when related to increased life expectancy.
Journal: Metody Ilościowe w Badaniach Ekonomicznych
- Issue Year: XIX/2018
- Issue No: 1
- Page Range: 1-11
- Page Count: 11
- Language: English