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@article{ART002791678},
author={Jeong, Ug-yeong and CIN BEOM CHEOL and Byoung Joon Kim},
title={The Effects of Population Aging on Aggregate Consumption: Comparative Analysis with Age Groups},
journal={Journal of Asia-Pacific Studies},
issn={1225-8539},
year={2021},
volume={28},
number={4},
pages={83-105},
doi={10.18107/japs.2021.28.4.003}

TY - JOUR
AU - Jeong, Ug-yeong
AU - CIN BEOM CHEOL
AU - Byoung Joon Kim
TI - The Effects of Population Aging on Aggregate Consumption: Comparative Analysis with Age Groups
JO - Journal of Asia-Pacific Studies
PY - 2021
VL - 28
IS - 4
PB - Institute of Global Affairs
SP - 83
EP - 105
SN - 1225-8539
AB - This paper investigates consumption function using auto-regressive distributed lag(ADL) model using quarterly data from 1990 to 2020. Elasticities of age-specific disposable income, inflation rate, interest rate, and population aging index were estimated and the effects of population aging on aggregate consumption were analyzed. Income elasticities household on average were 0.75, the biggest value of 0.97 the upper sixties, 0.73 in the lower thirties, 0.68 in the forties and the smallest one of 0.60 in fifties. Inflation elasticities were found to be the most responsive value of -0.03 the upper sixties and the other households shown to be around –0.01. Interest rate elasticity, household on average, showed -0.11 which means interest rate affects consumption as an opposite direction. Age-specific elasticities were the biggest value of –0.11 in lower thirties, -0.09 in the forties, -0.08 in the fifties and the positive value of 0.05 in the upper sixties. Currently low interest rate policy will function as a positive factor for aggregate consumption expenditure. Population aging elasticity was estimated be –0.06 which indicates 1% increment in population index will lead to 0.06% decrease in consumption. This result implies deepening in population aging will affect consumption negatively. As seasonal impacts, winter shows the largest while spring does the smallest in consumption. Facing with accelerating population aging, this paper could be a reference analysis in designing economic policy.
KW - Population Aging;Aging Index;Consumption Function;ADL Model;Consumption Elasticities
DO - 10.18107/japs.2021.28.4.003
ER -

Jeong, Ug-yeong, CIN BEOM CHEOL and Byoung Joon Kim. (2021). The Effects of Population Aging on Aggregate Consumption: Comparative Analysis with Age Groups. Journal of Asia-Pacific Studies, 28(4), 83-105.

Jeong, Ug-yeong, CIN BEOM CHEOL and Byoung Joon Kim. 2021, "The Effects of Population Aging on Aggregate Consumption: Comparative Analysis with Age Groups", Journal of Asia-Pacific Studies, vol.28, no.4 pp.83-105. Available from: doi:10.18107/japs.2021.28.4.003

Jeong, Ug-yeong, CIN BEOM CHEOL, Byoung Joon Kim "The Effects of Population Aging on Aggregate Consumption: Comparative Analysis with Age Groups" Journal of Asia-Pacific Studies 28.4 pp.83-105 (2021) : 83.

Jeong, Ug-yeong, CIN BEOM CHEOL, Byoung Joon Kim. The Effects of Population Aging on Aggregate Consumption: Comparative Analysis with Age Groups. 2021; 28(4), 83-105. Available from: doi:10.18107/japs.2021.28.4.003

Jeong, Ug-yeong, CIN BEOM CHEOL and Byoung Joon Kim. "The Effects of Population Aging on Aggregate Consumption: Comparative Analysis with Age Groups" Journal of Asia-Pacific Studies 28, no.4 (2021) : 83-105.doi: 10.18107/japs.2021.28.4.003

Jeong, Ug-yeong; CIN BEOM CHEOL; Byoung Joon Kim. The Effects of Population Aging on Aggregate Consumption: Comparative Analysis with Age Groups. Journal of Asia-Pacific Studies, 28(4), 83-105. doi: 10.18107/japs.2021.28.4.003

Jeong, Ug-yeong; CIN BEOM CHEOL; Byoung Joon Kim. The Effects of Population Aging on Aggregate Consumption: Comparative Analysis with Age Groups. Journal of Asia-Pacific Studies. 2021; 28(4) 83-105. doi: 10.18107/japs.2021.28.4.003

Jeong, Ug-yeong, CIN BEOM CHEOL, Byoung Joon Kim. The Effects of Population Aging on Aggregate Consumption: Comparative Analysis with Age Groups. 2021; 28(4), 83-105. Available from: doi:10.18107/japs.2021.28.4.003

Jeong, Ug-yeong, CIN BEOM CHEOL and Byoung Joon Kim. "The Effects of Population Aging on Aggregate Consumption: Comparative Analysis with Age Groups" Journal of Asia-Pacific Studies 28, no.4 (2021) : 83-105.doi: 10.18107/japs.2021.28.4.003