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Estimating The Effect Of Projected Household Composition Change On Production In Scotland

Author

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  • J.H.L. Dewhurst
Abstract
In this paper attention is directed at the effects of the ageing of the Scottish population. Expenditure patterns vary with the average age of household members Data from Family Spending is used to disaggregate the household column of the Scottish input-output table into three sub-sectors (a) Younger households (Age of head of household less than 65), (b) Mature households (Age of head of household between 65 and 74) and (c) Older households (Age of head of household 75 or more). A comparison of the published Type II multipliers with those using the disaggregated household sector is made. The second part of the paper uses household projections produced by the Registrar General for Scotland to forecast the relative changes that might be expected (ceteris paribus) in the three household expenditure columns. Alterations in the relative frequency of each type of household will have implications for individual industries. Holding total income constant, an increase in older households and a decrease in younger households would increase final demand for some commodities and lower it for others. Given the implicit multiplier effects, the industries that are relatively advantaged by the demographic change are identified.

Suggested Citation

  • J.H.L. Dewhurst, 2006. "Estimating The Effect Of Projected Household Composition Change On Production In Scotland," Dundee Discussion Papers in Economics 186, Economic Studies, University of Dundee.
    • Handle: RePEc:dun:dpaper:186
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    File URL: http://www.dundee.ac.uk/media/dundeewebsite/economicstudies/documents/discussion/DDPE_186.pdf
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    References listed on IDEAS

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    1. Fertig, Michael & Schmidt, Christoph M., 2003. "Gerontocracy in Motion? - European Cross-Country Evidence on the Labor Market Consequences of Population Ageing," RWI Discussion Papers 8, RWI - Leibniz-Institut für Wirtschaftsforschung.
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    Cited by:

    1. Kronenberg, Tobias, 2009. "The impact of demographic change on energy use and greenhouse gas emissions in Germany," Ecological Economics, Elsevier, vol. 68(10), pages 2637-2645, August.
    2. Nabil Annabi & Maxime Fougère & Simon Harvey, 2009. "Inter‐temporal and Inter‐industry Effects of Population Ageing: A General Equilibrium Assessment for Canada," LABOUR, CEIS, vol. 23(4), pages 609-651, December.
    3. Paula C. Albuquerque & João C. Lopes, 2010. "Economic impacts of ageing: an inter‐industry approach," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(12), pages 970-986, October.
    4. Sabadini Carvalho, Terciane & Santiago, Flaviane & Perobelli, Fernando, 2018. "Demographic Changes and its Impacts on Consumption and Greenhouse Gas Emissions in Brazil: a computable general equilibrium model approach," Conference papers 332970, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Ying Long & Jiahao Feng & Aolong Sun & Rui Wang & Yafei Wang, 2023. "Structural Characteristics of the Household Carbon Footprint in an Aging Society," Sustainability, MDPI, vol. 15(17), pages 1-18, August.

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    More about this item

    Keywords

    Input-Output; Household projections; Scottish economy;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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