Class
Article
College
College of Agriculture and Applied Sciences
Department
Applied Economics Department
Faculty Mentor
Man-Keun Kim
Presentation Type
Oral Presentation
Abstract
The united states currently is the third populous nation in the world after china and India. This represents about 4.5% of the world's population. the U.S population was estimated at 308.7 million during the 2010 census. The share of the population that is 65 and over keeps rising over the years .Over the last ten years the 65 and over population has jumped from 12.55 to 15%.This paper seeks to find the relationship between the fiscal balance and the demographic variables. Proper understanding of this dynamics enables policy-makers to develop pragmatic projection with regards to government expenditure on some essential domain such as medicare, pension , health insurance e.t.c. The main purpose of this paper is to determine the effect of the aging population an public finance. A panel data on 48 states of the U.S excluding Alaska and Hawaii in the period from 2010 to 2015.Since the model under consideration is a dynamic panel where a lag of the dependent variable is included as a regressor, the Arellano-Bond(1991) GMM method of estimation is applied This method of estimation is used because the demographic variables is treated as an endogenous. The results of this research shows a significant and positive impact of the elderly population on government expenditure for other essential domain. The results also indicates a negative effect of the aging population on budget balance.
Location
Room 208
Start Date
4-10-2019 1:30 PM
End Date
4-10-2019 2:45 PM
Included in
The Impact of Demographic Transition (Elderly Dependency Ratio) on Fiscal Balance
Room 208
The united states currently is the third populous nation in the world after china and India. This represents about 4.5% of the world's population. the U.S population was estimated at 308.7 million during the 2010 census. The share of the population that is 65 and over keeps rising over the years .Over the last ten years the 65 and over population has jumped from 12.55 to 15%.This paper seeks to find the relationship between the fiscal balance and the demographic variables. Proper understanding of this dynamics enables policy-makers to develop pragmatic projection with regards to government expenditure on some essential domain such as medicare, pension , health insurance e.t.c. The main purpose of this paper is to determine the effect of the aging population an public finance. A panel data on 48 states of the U.S excluding Alaska and Hawaii in the period from 2010 to 2015.Since the model under consideration is a dynamic panel where a lag of the dependent variable is included as a regressor, the Arellano-Bond(1991) GMM method of estimation is applied This method of estimation is used because the demographic variables is treated as an endogenous. The results of this research shows a significant and positive impact of the elderly population on government expenditure for other essential domain. The results also indicates a negative effect of the aging population on budget balance.