Debt Sustainability in the Context of Population Ageing: A Risk Management Approach

The ageing of the population has negative effects on the gross domestic product (GDP), influencing various economic and social aspects. These effects, in turn, contribute to an increase in the debt-to-GDP ratio, raising concerns about the long-term sustainability of public debt. The objective of our...

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Main Authors: Samantha Ajovalasit, Andrea Consiglio, Davide Provenzano
Format: Article
Language:English
Published: MDPI AG 2024-11-01
Series:Risks
Subjects:
Online Access:https://www.mdpi.com/2227-9091/12/12/188
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author Samantha Ajovalasit
Andrea Consiglio
Davide Provenzano
author_facet Samantha Ajovalasit
Andrea Consiglio
Davide Provenzano
author_sort Samantha Ajovalasit
collection DOAJ
description The ageing of the population has negative effects on the gross domestic product (GDP), influencing various economic and social aspects. These effects, in turn, contribute to an increase in the debt-to-GDP ratio, raising concerns about the long-term sustainability of public debt. The objective of our study is to evaluate the possible dynamics of debt sustainability with a certain level of probability. The analysis employs the stochastic modelling of risk factors influencing the debt-to-GDP ratio, particularly emphasising the economic consequences of population ageing. Using advanced risk management techniques, we aim to provide a robust assessment of how future demographic outlooks impact debt sustainability.
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spelling doaj-art-d06e760d0e6d4fa891c461fb6dd5111c2024-12-27T14:51:50ZengMDPI AGRisks2227-90912024-11-01121218810.3390/risks12120188Debt Sustainability in the Context of Population Ageing: A Risk Management ApproachSamantha Ajovalasit0Andrea Consiglio1Davide Provenzano2Department of Economics, Business, and Statistics, University of Palermo, Viale delle Scienze, 90128 Palermo, ItalyDepartment of Economics, Business, and Statistics, University of Palermo, Viale delle Scienze, 90128 Palermo, ItalyDepartment of Economics, Business, and Statistics, University of Palermo, Viale delle Scienze, 90128 Palermo, ItalyThe ageing of the population has negative effects on the gross domestic product (GDP), influencing various economic and social aspects. These effects, in turn, contribute to an increase in the debt-to-GDP ratio, raising concerns about the long-term sustainability of public debt. The objective of our study is to evaluate the possible dynamics of debt sustainability with a certain level of probability. The analysis employs the stochastic modelling of risk factors influencing the debt-to-GDP ratio, particularly emphasising the economic consequences of population ageing. Using advanced risk management techniques, we aim to provide a robust assessment of how future demographic outlooks impact debt sustainability.https://www.mdpi.com/2227-9091/12/12/188debt sustainability analysispopulation ageingstochastic optimisationrisk management
spellingShingle Samantha Ajovalasit
Andrea Consiglio
Davide Provenzano
Debt Sustainability in the Context of Population Ageing: A Risk Management Approach
Risks
debt sustainability analysis
population ageing
stochastic optimisation
risk management
title Debt Sustainability in the Context of Population Ageing: A Risk Management Approach
title_full Debt Sustainability in the Context of Population Ageing: A Risk Management Approach
title_fullStr Debt Sustainability in the Context of Population Ageing: A Risk Management Approach
title_full_unstemmed Debt Sustainability in the Context of Population Ageing: A Risk Management Approach
title_short Debt Sustainability in the Context of Population Ageing: A Risk Management Approach
title_sort debt sustainability in the context of population ageing a risk management approach
topic debt sustainability analysis
population ageing
stochastic optimisation
risk management
url https://www.mdpi.com/2227-9091/12/12/188
work_keys_str_mv AT samanthaajovalasit debtsustainabilityinthecontextofpopulationageingariskmanagementapproach
AT andreaconsiglio debtsustainabilityinthecontextofpopulationageingariskmanagementapproach
AT davideprovenzano debtsustainabilityinthecontextofpopulationageingariskmanagementapproach