Effect of Age Structure of Population on Saving and Consuming in Iran

One of the main characteristics of moving toward economic development is that the set of economic activities of country can attract available saving sources in national economy to investment consumption. It is accepted that removing part of production means that it is necessary to exist saving and change it to manufacturing investments to protect available welfare level and obtain higher level of welfare. This study has aimed to investigate the effect of factors on national savings and consumption. Data were in form of annual time series data for 1975-2010. The effect of changing age structure of population on national savings and consumption is important in the study. Accordingly, population variables were included in the pattern and their coefficients were estimated by ordinary least squares (PLS). Results from the study showed that age structure of population affects the amount of saving and consumption of people. Increase in ration of people with 0-15 and 65 years old decreases amount of saving and increases the consumption. In contrast, increase in people with 25-64 years old increases national saving.