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The Impact of Population Ageing on Public Debt: A Panel Data Analysis for 18 European Countries

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  • Nicolas Afflatet

    (Helmut-Schmidt-Universit t, Hamburg, Germany)

Abstract

Population ageing is one of the major long-term challenges industrialized countries face. Forecasts predict that public debt is going to rise sharply for most countries due to population ageing. However, until now there has been little research on how population ageing already affects public debt. Based on a panel data analysis for 18 European countries it is shown that there is only little empirical evidence for such an impact until 2015. This does certainly not mean that it will not have an effect on public debt in the future. Governments are well-advised to benefit from the breathing space the still moderate total dependency ratio offers to adapt their social security systems.

Suggested Citation

  • Nicolas Afflatet, 2018. "The Impact of Population Ageing on Public Debt: A Panel Data Analysis for 18 European Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 68-77.
    • Handle: RePEc:eco:journ1:2018-04-10
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    Cited by:

    1. Zapji Ymélé Aimé Philombe, 2022. "Interest Charges and the “Said†Ageing-related Expenditures: A Study of OECD Countries," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 15(3), pages 7-23, December.
    2. María del Carmen Ramos-Herrera & Simón Sosvilla-Rivero, 2020. "Fiscal Sustainability in Aging Societies: Evidence from Euro Area Countries," Sustainability, MDPI, vol. 12(24), pages 1-20, December.

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    More about this item

    Keywords

    Population Ageing; Public Debt; Social Security Systems; Demographic Dividend;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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