An empirical study of the effect of population aging on inflation in selected developing and developed countries over the period 2000-2018
Among human resources, attention to demographic issues, especially the age structure of the population, is of particular importance in the economic growth and development of communities. If the necessary planning is done to face the changes in the age structure of the population in each country, it can provide the welfare of that country, but if these changes happen suddenly and without planning, it can cause serious damage to the economies of countries. The main purpose of the present study is to investigate the effect of population aging on inflation in two selected groups of developing and developed countries over the period 2001-2018 using panel data method. Empirical results show that in both groups of developing and developed countries, population aging has a negative and significant effect on inflation rate. Also, the growth of liquidity and the growth of production had a positive and negative effect on inflation in both groups of countries, respectively, which is in line with theoretical expectations. On the other hand, the results indicate that the increase in life expectancy in both groups of countries had a negative and significant effect on inflation in the study period.
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