Economic Aspects of Population Aging. Modeling Senior Household Ependiture

Iwona Bak, Beata Szczecinska
European Research Studies Journal, Volume XXIV, Special Issue 3, 50-67, 2021
DOI: 10.35808/ersj/2414

Abstract:

Purpose: The purpose of the present article is to model senior citizens' household expenditure and try to identify factors that influence consumer behavior in this social group. Analyses of Polish households were used as a case study. Design/Methodology/Approach: The study used selected structure description parameters to characterize the studied population synthetically. Power-exponential econometric models were used to characterize consumer goods and services expenditure in households headed by persons aged 65+. Findings: The power-exponential models used in the article proved to be a valuable tool in the research into spending on consumer goods and services. In all the models, the level of the overall income per capita was found to have a significant positive impact. Another important finding was that the preferences differed depending on the class of the locality of residence, the subjective assessment of the material situation of one's household, the number of persons in the household, and the level of educational background, and the age of the person heading the household. Practical Implications: The research results presented in the paper are of considerable importance for developing a policy addressing the needs of the elderly, including, for example, creating appropriate marketing instruments and preparing an offer aimed at the ever-growing group of senior citizens. Originality/Value: The present article contributes to the most recent European and global scientific discussions on the significance of the elderly for the development of economies from the perspective of their impact on the markets for goods and services.


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