The Korea Local Administration Review

This study is aimed to analyze the relationship between aging problems and localexpenditure. Considering the changes of regulations concerned with local expenditureand data availability this study focused on the variances between 2008 and 2013on the basis of 226 lower-tier local governments.This study shows that population aging had positive effects on the total of localexpenditure. Population aging, however, imposed negative effects on the expenditureof general administration and economic development as well while it inflicted positiveeffects on the expenditure of social development.The detailed analyses of data on the basis of types of local governments, includingcities, counties and metropolitan boroughs find out various results. Population agingin cities affected no impact on the total of local expenditure. It also had positiveeffects on the expenditure of social development as well in a significant way whileit imposed negative effect on the expenditure of general administration and economicdevelopment. In the case of counties, population aging had no significant impactson the local expenditure while population aging had negative causal relations withthe expenditure of economic development in metropolitan boroughs.
□ Keywords: aging, aging society, local expenditure, omitted variable bias