Demographics Unravelled - How Demographics Affect Influence Every Aspect of Economics, Finance

Discover what demographics can tell us about the economy, markets, and the future
 
In Demographics Unravelled, renowned Macro-Demographics expert Amlan Roy delivers an insightful and timely exploration of the impact that "people characteristics" have on national economies. Considering factors like gender, race, migrant status, family background, and education, the author delves deeply into a subject that drives market behavior and economic variables, including growth, debt, inflation, employment, and productivity. These have national and international policy implications.
 
In this one-of-a-kind book, you'll discover:
* Why the study of demographics is the hidden key to understanding economic growth, asset prices, and capital flows
* How to use detailed demographics to forecast future scenarios in economics, socioeconomics, geopolitics, and the environment
* The short-, medium-, and long-term effects of consumer and worker behavior
* How understanding demographics is key to understanding health, pensions, migration, sustainability and social policies. It is intimately linked to the Sustainable Development Goals of the UN--Gender, Climate, Poverty and Inequality
 
Perfect for institutional investors, insurance professionals, economists, and business leaders, Demographics Unravelled will also earn a place in the libraries of academics and students studying a variety of economic disciplines and seeking a one-stop and in-depth discussion of demographics-driven macroeconomic effects.

List of contents

Acknowledgements xv
 
Selected Abbreviations xvii
 
Preface xix
 
Chapter 1: Introduction 1
 
1.1 Recasting Demographics 2
 
1.2 Effects and Implications of Demographics 5
 
Chapter 2: Core Data: Past, Present, and Future 11
 
2.1 Economic History and the History of Global Population Trends 13
 
2.2 Core Demographic Variables: Data, Analysis, and Some Observations 16
 
2.2.1 Population Size and Population Growth 16
 
2.2.2 Ageing Populations 18
 
2.2.3 Life Expectancy Increases 20
 
2.2.4 Total Fertility Rates 21
 
2.2.5 Dependency Ratios 23
 
2.2.6 Gender Ratios 26
 
2.2.7 Age Structure and Population Pyramids 29
 
2.2.8 The Demographic Transition Model 32
 
2.3 The Role of Migration 35
 
2.4 Urbanisation 46
 
2.5 Small Nation-States: Demographics 50
 
2.6 Changing Longevity--Metrics Need Changing 51
 
2.7 Changing Social and Individual Behaviour 53
 
2.8 Multiple Generations 55
 
2.9 Conclusion 57
 
Chapter 3: Demographics and Macroeconomics 59
 
3.1 Demographics and Economic Growth 60
 
3.2 The "Demographic Dividend" and GDP per Capita Growth 66
 
3.3 Inflation 70
 
3.4 Debt, Deficits, and Fiscal Sustainability 84
 
3.5 Demographics, Monetary Policy, and Interest Rates 90
 
3.6 Demographics and Unemployment 93
 
3.7 Demographics, Capital Flows, and Current Account 95
 
3.8 Conclusions 96
 
Chapter 4: Demographics and Asset Prices 99
 
4.1 Theories of Life-Cycle Consumption, Savings, and the Permanent Income Hypothesis 100
 
4.1.1 Life-Cycle Consumption Theory 100
 
4.1.2 Permanent Income Hypothesis 102
 
4.1.3 Consumption, Savings, and Intertemporal Loans: Pioneer Paul Samuelson 104
 
4.2 How Demographics Influences Equity Prices and Markets 105
 
4.3 Will There Be an Asset Market Meltdown When the Baby Boomers Retire? 116
 
4.4 Demographic Changes and Interest Rates (Bond Yields) 119
 
4.5 Demographics and Risk Premiums 124
 
4.6 Asset Holdings and Age 125
 
4.7 Demographics and Equity Sectors 128
 
4.8 Demographics and Real Estate 136
 
4.9 Demographics and Commodities 140
 
4.10 Conclusions 143
 
Chapter 5: Health and Longevity 147
 
5.1 Health Issues, Expenditures, and Measures 149
 
5.1.1 Health Expenditures 150
 
5.1.2 Global Health Security 152
 
5.1.3 Global Burden of Disease 155
 
5.1.4 Health in Emerging Countries 157
 
5.2 Longevity 163
 
5.2.1 Increases in Life Expectancy and Conditional Life Expectancy 164
 
5.2.2 Life Expectancy vs. Healthy Life Expectancy 166
 
5.2.3 DALYs and Their Causes 168
 
5.2.4 Longevity and Mortality: More Than Just Births and Deaths 169
 
5.2.5 Longevity Risk and the Uncertain Future of Longevity 172
 
5.2.6 Longevity Forecasting Models: Countries and Regions 174
 
5.2.7 Short Summary of Longevity Models 177
 
5.2.8 Annuities as a Longevity Risk Management Tool 183
 
5.2.9 Other Longevity Risk Management Tools and Instruments 187
 
5.3 Conclusions 190
 
Chapter 6: Pensions and Retirement 193
 
6.1 A Brief History of Social Security and Pensions 194
 
6.1.1 Pre-Social Security 195
 
6.1.2 Committee on Economic Security 196
 
6.2 Evaluating Pension Systems: Indicators and Cross-Country Comparisons 200
 
6.3 Evaluating Age-Related Pension Expenditures across Countries 208
 
6.4 Pensions and Pension Systems: The Experts 210
 

About the author

AMLAN ROY is a global macro-researcher and recognised public speaker with 35 years of experience across investment banking, investment management and academia. He is the founder of Global Macro Demographics. He was most recently Head of Global Macro Policy Research and Senior MD at State Street Global Advisors (until end-June 2021) and prior to that MD and Global Head of Demographics & Pensions Research at Credit Suisse Investment Bank (1998-2016). His research is in macroeconomics, demographics and retirement, and asset pricing. He is a Research Associate at London School of Economics' Systemic Risk Centre and Honorary Fellow of the Institute and Faculty of Actuaries. He has a BA in Economics (St Stephen's College), MBA (IIM Ahmedabad), MA and PhD (University of Iowa).

Summary

Discover what demographics can tell us about the economy, markets, and the future

In Demographics Unravelled, renowned Macro-Demographics expert Amlan Roy delivers an insightful and timely exploration of the impact that "people characteristics" have on national economies. Considering factors like gender, race, migrant status, family background, and education, the author delves deeply into a subject that drives market behavior and economic variables, including growth, debt, inflation, employment, and productivity. These have national and international policy implications.

In this one-of-a-kind book, you'll discover:
* Why the study of demographics is the hidden key to understanding economic growth, asset prices, and capital flows
* How to use detailed demographics to forecast future scenarios in economics, socioeconomics, geopolitics, and the environment
* The short-, medium-, and long-term effects of consumer and worker behavior
* How understanding demographics is key to understanding health, pensions, migration, sustainability and social policies. It is intimately linked to the Sustainable Development Goals of the UN--Gender, Climate, Poverty and Inequality

Perfect for institutional investors, insurance professionals, economists, and business leaders, Demographics Unravelled will also earn a place in the libraries of academics and students studying a variety of economic disciplines and seeking a one-stop and in-depth discussion of demographics-driven macroeconomic effects.

Product details

• Authors: A Roy, Amlan Roy
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 31.08.2021
• EAN: 9781119799139
• ISBN: 978-1-119-79913-9
• No. of pages: 320
• Subjects: Social sciences, law, business > Business > Business administration; Demographie, Volkswirtschaftslehre, Economics, Finanzwesen, Allg. Finanz- u. Anlagewesen, Finance & Investments, Finanz- u. Anlagewesen, Insurance & Risk Management, Versicherungswesen u. Risikomanagement, Allg. Volkswirtschaftslehre