The Acceleration or Suppression: Aging in China

The article aims to verify whether the aging population suppresses the economic consumption level of Chinese residents, depending on the economic situation in China. To diversify the sample, the work searched the situation of expenditure of countries in China. Using daily data over the period 2014-2021, the work estimates the correlation between the elderly dependency ratio and economic consumption through the expenditure approach of GDP and the Hodrick and Prescott Filter model. The work adds cyclical components to the correlation equation, indicating the manner of detrending to test the objective outcome of the GDP index. The work concludes that the GDP index is closely connected with medical insurance fund expenditure, leading to the working population paying more attention to healthcare problems. The level of the elderly dependency ratio depends on the medical insurance fund expendituresocial pension insurance funds, and government health expenditure.