Implications of Demographic Change in Enlarged Eu on Patterns of Saving and Consumption and in Related Consumer’s Behaviour­­

1. Introduction

In December 2005 our working group was asked by the European Commission (DG Employment and Social Affairs) to conduct a research project on the effects of ageing on consumption and social expenditure.
The analysis of the effects of ageing on consumption patterns, as well as the effects on the provision of public goods and services, have been widely addressed by both theoretical and empirical literature, we are not aiming, with this work, at providing advancements of the literature, on the contrary, we will build on it to obtain a user friendly and fairly complete model providing consistent answers to policymakers.
The job was planned accordingly, and divided into different steps: first an analysis of Eurostat demographic projection; second the estimation of consumption-age profiles; third the parameterization and radical extension of our already existing projection model, in order to allow for consumption projections; and, finally the running of projections and the analysis of results.
Read More