Geoscience Reference
In-Depth Information
Changes in
interregional
trade
Changes in the
Structure of
Production
Changes in the
Structure of
Income
Changes in the
Structure of
Consumption
In- and Out-
Migration
Aging
Regional
Preferences
Fig. 11.1
The demographic-economic connection
need to consider ways in which some of these demographically-induced changes can
be handled. In a sense, the duality between production structure and the structure of
income distribution advanced in the context of social accounting systems (see
Fig.
11.1
) can be enhanced by a broader vision of the demographic influences on
consumption, income distribution and thus production.
Some progress has been made on this topic. Hewings (
1982
) and Hewings
et al. (
1989
) emphasized the role of the household sector and the importance of
consumption patterns in the analysis using extended input-output and social
accounting models. When the input-output table is embedded in a social accounting
systems, almost all the analytically important entries concentrate in the parts of
system capturing economy
$
household interactions. Li et al. (
1998
) and Rose and
Li (
1998
) constructed an income distribution matrix to explore various facets of
income distribution at the national and regional levels. Rose and Beaumont (
1988
,
1989
), and Rose and Li (
1998
) calculated estimates of interrelational income
multipliers using the method proposed by Miyazawa (
1976
). More recently,
Wakabayashi and Hewings (
2007
) found some implications of life cycle changes
on Japanese consumption behavior using a modified AIDS estimation system in the
interregional context.
Initially, to explore some implications of demographic changes on consumption
behavior in the Chicago region, an extended Chicago Region Econometric Input-
Output Model (CREIM) was developed, into which a modified Almost Ideal
Demand System (AIDS) was integrated. A recent prediction shows that the propor-
tion of the ageing population will accelerate after 2010 in both the US and Chicago
(see Fig.
11.2
). The US experience is not unique; the proportion of the elderly
population (65+) to those of working age (15-64) in Korea is expected to rise from
