Population Aging On Hubei Household Consumption Impact Analysis

In recent years, China has stepped into a society of aging population. Meanwhile, the population structure problem has also become a main factor that we should pay attention to in the process of China’s development. As a province in the central part of China, Hubei has been experiencing this problem since2003. what’s more, the speed of it is increasing step by step. At the end of2012, the people who are over60have been5.6714million, accounting for9.81%of the population, an increase of0.4195million over the previous year. Compared to the9.09%in sixth census in2010, the elderly population increased by0.72%.In recent years, more and more scholars study the influence of population age structure on our nation consumption. As research continues, academia and the community consider the population age structure especially aging is one of the most important reasons that has caused the lack of significant downturn in consumer demand. Most scholars has focused their research object on the nation-wide population age structure, but rarely studied in population aging independently, and even less in the case of the provincial research. There exists significant difference on economic development and population age structure among regions. Therefore, it is very necessary to study on the impact of aging separately among the research on the effect of population age structure on the household consumption.In this paper, the status of aging population in Hubei and the consumption level of the status quo have been introduced firstly, followed by an analysis of spending habits of the elderly population and the likely impact of the aging population on household consumption in Hubei. Finally, introduced to establish the population age structure variables shadow consumption function, according to the time series data for econometric analysis, we draw following conclusions:(1) the impact of population aging on the level of consumption in Hubei is negative. That is,when that number of aging population grows in Hubei, residents consumption level will be reduced. With the increasing number of elderly population in Hubei province over the next20years,the negative impact of aging population on the level of consumption in Hubei will be more severe.(2) the income of urban and rural regions in Hubei have significant difference on the acceleration of consumption level. In this study, we found that the impact is positive, but the income of urban residents consumption level is estimated to be greater than the estimated coefficient of rural residents’income.