A previous version of this paper was circulated under the title ‘The impact of age distribution on the stock price: a nonparametric approach’
How does changing age distribution impact stock prices? A nonparametric approach†
Article first published online: 22 JUN 2009
Copyright © 2009 John Wiley & Sons, Ltd.
Journal of Applied Econometrics
Volume 25, Issue 7, pages 1155–1178, November/December 2010
How to Cite
Park, C. (2010), How does changing age distribution impact stock prices? A nonparametric approach. J. Appl. Econ., 25: 1155–1178. doi: 10.1002/jae.1101
- Issue published online: 22 JUN 2009
- Article first published online: 22 JUN 2009
Vol. 26, Issue 5, 886–887, Article first published online: 20 JUL 2009
This paper examines whether variations in demographic structure have influenced stock prices. The study employs a nonparametric approach based on the Fourier Flexible Form representation, which relates variations in the entire age distribution to the normalized stock price under a flexible functional form. The main findings of this paper are that there is a significant impact from prime working-age consumers on the stock price, and that this impact is robust for all G5 countries (France, Germany, Japan, the UK and the USA). These findings survive many robust tests, and are consistent with the predictions from the life-cycle models. Copyright © 2009 John Wiley & Sons, Ltd.