Economic Theory of Aging

The Economic Theory of Aging explores how age affects economic factors such as productivity, consumption, and savings. As people age, their work capacity may decline, leading to reduced income and changes in spending habits. Older adults often save for retirement, affecting their consumption patterns and investment strategies. This theory examines how these factors impact the economy as a whole, influencing labor markets, social security systems, and healthcare costs. Understanding these dynamics helps policymakers create effective strategies to support aging populations and ensure sustainable economic growth.