IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v6y2016i9p534-546id1504.html
   My bibliography  Save this article

Population Aging, Marginal Propensity to Consume, and Economic Growth

Author

Listed:
  • Zheng Guo
  • Linchen Liu
  • Xuan Liu

Abstract

This paper explores the mechanism of population aging affecting economic growth by influencing marginal propensity to consume. We find that population aging has both a positive and a negative effect on economic growth. We calculate the critical state of the two effects and draw the conclusion that if marginal propensity to consume is greater than the critical value, the decrease of marginal propensity to consume has a more directly impact on consumption and, therefore, that the negative influence of the decreasing consumption dominates the impact on economic growth. Conversely, if the marginal propensity to consume is less than the critical value, capital per capita is affected more and, therefore, the positive influence of the rising capital per capita on economy is dominant.

Suggested Citation

  • Zheng Guo & Linchen Liu & Xuan Liu, 2016. "Population Aging, Marginal Propensity to Consume, and Economic Growth," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(9), pages 534-546.
    • Handle: RePEc:asi:aeafrj:v:6:y:2016:i:9:p:534-546:id:1504
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1504/2148
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Taoyuan Wei & Qin Zhu & Solveig Glomsrød, 2018. "Ageing Impact on the Economy and Emissions in China: A Global Computable General Equilibrium Analysis," Energies, MDPI, vol. 11(4), pages 1-13, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:6:y:2016:i:9:p:534-546:id:1504. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.