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How does changing age distribution impact stock prices? A nonparametric approach

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Errata

This article is corrected by:

  1. Errata: How does changing age distribution impact stock prices? a nonparametric approach Volume 26, Issue 5, 886–887, Article first published online: 20 July 2009

  • A previous version of this paper was circulated under the title ‘The impact of age distribution on the stock price: a nonparametric approach’

Abstract

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.

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