Public Development Expenditure and Life Expectancy of Older Adults in India: Evidence from an Auto-Regressive Distributed Lag Model

Abstract

This study investigates the relationship between life expectancy among older adults and key fiscal variables such as state development expenditure, central development expenditure, and pension expenditure, using an auto-regressive distributed lag model. The analysis explores both short- and long-run dynamics over an extended period. Results show that state and central development expenditures have a significant positive impact on the life expectancy of men aged 60 and above. However, lagged central development expenditure exerts a negative and statistically significant effect on the life expectancy of older adult women, suggesting potential gender disparities in the benefits of public spending. Bounds testing confirms a stable long-run association between the fiscal variables and life expectancy among older adults. The findings underscore the importance of inclusive and gender-sensitive development policies to enhance the quality of life for older adults in India, offering valuable insights for fiscal planning.

Keywords

Ageing demography social security social support population well-being

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