Economics of Ageing

The subject examines the influence of private and public/government decision-making on the economic well-being of older people. These decisions include private decisions to prepare for old-age and to live through old-age by saving and managing assets such as housing, superannuation, annuities and other assets and government decisions to provide income support, health care and regulations that aim to protect old people. The influence of behavioural biases, as uncovered by behavioural economics, will be discussed. The subject also covers how an ageing population exerts upward pressure on the taxation required to finance government activities and services for the aged and how this may affect the ‘social contract’, in which the young assist the old in expectation of assistance when they are old from succeeding generations.