Knowledge that Transforms

The continuation of low rates of fertility and reductions in mortality rates of the elderly have revived the interest of economists in the examination of the economic impacts of aging populations. These concerns combined with the analysis of the income status of the elderly and their activities from the broad framework of the economics of aging. The rapid growth of support programs for the aged also has been the focus of considerable economic analysis. This review highlights the most important areas of research in the literature on aging. The first section discusses the determinants of population age structure changes and their impact on the size and composition of the dependent groups. The following section provides a review of the economic status of the elderly and the sources of income in old age. Section III incorporates the economic characteristics of the elderly into a life-cycle context while Section IV examines the empirical evidence concerning labor supply decisions of the aged. Social Security and private pensions and their influence on the economy are analyzed in Section V. The final section of this article reviews evidence on the interaction between aging and macroeconomic variables. (excerpt)

The manifestations of poverty (e.g. nutritional deprivation and ill-health) and the attendant serious obstacle posed by rapid population growth in developing countries are a problematic and serious concern for policy makers responsible for formulating policies and programs that would alleviate such conditions. In many developing countries reduction of poverty is interrelated with other goals (promoting a self-sustaining cumulative economic growth improving health and public services slowing down populating growth rate) bringing about problems related to the multiplicity of options for effective action. Some of these problems involve the limited application of cost-benefit analysis and other conventional investment criteria in measuring benefits derived from health and education programs the influence of political decisions on economic policies and the extent upon which technology and organization affect the success or failure of development goals. Scarce resources limited options and disparate requirements of competing groups also affect the types of programs implemented (especially nutrition and family planning programs with its numerous intervention schemes that have mostly proved disappointing). To improve the health and nutrition of the population and to slow down population growth rates of developing countries it is imperative that economists nutrition and health experts demographers and political scientists collaborate on a multidisciplinary research scheme that would identify and provide guidelines in formulating effective and feasible policies and programs for the well-being of the population.