Effect of Population Aging on Consumption Demand in Urban Areas of Iran during 1996 to 2012

This paper investigates the effect of population ageing on consumption demand in urban areas of iran during 1996 to 2012. Since consumption expenditures change markedly over the lifecycle, the structure of aggregate consumption is likely to change in the course of population ageing. The aim of this study was to explore the impact of population aging on consumption demand at the macroeconomic level through estimating aggregate consumption structure. Type of the study was a secondary analysis and was conducted using pseudo-panel method and expenditure data coming from the household income . In this study, 9 sectors of household expenditures including food, clothing, furniture and appliances, health, communication, transport, education, miscellaneous goods and durable goods were studied to evaluate upward and downward trend of expenditure during the life cycle especially in older age. The results showed that: expenditures related to the health, household durable goods, communications, transport and clothing sectors had an upward trend by increasing age, especially after the age of 60 years old, on the other hand, the costs related to education, food, furniture and appliances and other goods and services sectors had downward trend.