The Use of Simulation Modelling in the Analysis of the Economic Aspects of Diseases in Old Age

In the coming decades, the size and age-structure of Europe’s population will undergo dramatic changes due to low fertility rates and continuous increases in life expectancy. These changes also bring significant impacts on the economies of these countries. The impacts are a shortage of workers, chronic and degenerative diseases, increased government spending on health care and pensions. The more precise idea of the economic impacts countries have, the better they can over time develop strategies to deal with the situation. The aim of this paper is to present a dynamic simulation modelling as a tool to illustrate the economic aspects of population aging. The purpose of the simulation model is to simulate the behavior of the real system. The simulation model mimics when they run the substantial sites of the modelled system. The key to creating a simulation model is to understand the relationships and constraints of the modelled object. In the context of the research the simulation model is used for diseases in old age, particularly dementia. A tool for the simulation model is a software called STELLA, which meets the requirements for this area. The created and proposed model shows a number of benefits that are important for the expression of the economic aspects of diseases in the old age. These benefits are not included in standard statistical methods for predicting future development and other economic analyses used for this purpose.