Impact of demographic change on stock prices

Shakil Quayes and Abul M.M. Jamal

The Quarterly Review of Economics and Finance, 2016, vol. 60, issue C, 172-179

Abstract: Focusing on the relationship between the demographic structure of population and stock prices, we find that stock prices are positively affected by the proportion of population in their prime earning age and negatively affected by the proportion of retirees. The empirical analysis identifies a structural break coinciding with the first wave of baby boomers reaching their prime earning age in the early 1990s. In addition, the results show that both budget deficit and inflation have a negative effect on stock prices.

Keywords: Demographic structure; Price–dividend ratio; Structural break; Budget deficit; Inflation (search for similar items in EconPapers)
JEL-codes: E22 E62 G12 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:60:y:2016:i:c:p:172-179

DOI: 10.1016/j.qref.2015.08.005

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