Aging Population and City Spending

ABSTRACT:

This paper examines the relationship between aging and spending change for cities in Oregon. There is evidence that high growth in the share of the 65 years and older population has a significant depressing effect on overall spending change. The overall negative effect on spending somewhat supports the “Gray Peril” hypothesis. Also, rates of change in police spending are predicted to be high where the proportion of the elderly population is high. Police protection is a service that is of great, but not exclusive, importance to older residents. Police protection also is a basic public service and it may be that the elderly are more willing to support core services that historically have been government provided.