Impact of Population Aging on Consumption and Saving in Thailand : Structural Break Approach

Pimonpun Boonyasana, Warattaya Chinnakum

Abstract

This study aimed to investigate the impact of population aging on consumption and saving in Thailand over the period 1975-2016. Bai and Perron structural break test methodology was employed. Our analysis found that there are structure breaks in ratio of consumption to GDP and ratio of saving to GDP. Then, we employed least square with breakpoint to estimate consumption and saving equation. The results showed that impact of population aging are vary across regime. Moreover, there are negative impact of aging dependency on consumption and saving.