Effect of Aging Population on the Financial Markets

Abstract The demographic questions have occupied for a few years an Copernican place in the great debates of economic policy, in France as well as in the principal industrialise countries. In other words, all the large industrialized countries testament know a considerable maturation of the universe during the adjoining decades. In the academic circles and the business press, they believe that the ageing of the world bequeath have important effects on the pecuniary marts following the impact awaited on the rates of deliverance and the request of the funds investments. To develop the subject, we will initially dumbfound the various studies made by certain authors to justify the normal claims according to which the demographic factors probably contributed to the recent movements of the values of credit, and they will have can be an important influence in the future. Then, we will continue by studying the impact of ageing on the financial markets and the economy referring to an econometric model wake the relation between the proportion of the old population of 65ans and more and certain financial variables. Therefore, how the changing volume of the segment affects the prices and the profess of the assets? Which is the impact of the population ageing on the money market?

Would the development of the financial markets be largely the consequence of the population ageing? Introduction and Literature Review In a archetypical part we will demonstrate how several economic models took an important place in the demographic studies and studied how the changing surface of it of the segment affects the prices and the yield of the assets. The three examples for such models, by chronological order, are: Yoo (1994a), Brooks (2002), and Geanakoplos, Magill and Quinzii (2004). All these models suggest that a demographic transition will affect the receipts of the capital market, although the size of the estimated values varies through the models. Yoo (1994a) calibrates a model in which, the... If you indigence to get a full essay, order it on our website: Orderessay

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