Can Population Age Structure Explain Financial Structure Changes

In this paper, the theoretical basis for the life cycle theory. When people are young,because of lack of experience and experience, personal income will be the lowest point in my life, at this time with a small amount of savings(wealth) but at the same time, most of the young people will choose to start a family at this stage, will greatly exceed its income and expenditure in addition to the elders to financially support, become the only choice borrowing from Banks, such as mortgages, car loans, consumer credit loans, etc. So young people almost have no spare money to financial assets investment. When personal middle-aged, personal experience and experience gradually rich, at this time of personal income will be the highest point in his life, savings(wealth) will peak at this stage to life;Youth is largely settlement such as mortgages, car loans, there will be a lot of configuration funds, plus this stage has relative preferences of the individual in the risk, so personal financial assets investment will increase, the stock market will tend to be more active.When people enter the retirement period, in the absence of social security system, under the assumption of no source of income, savings, before people start spending time on the one hand, due to the normal daily expenses, people begin to liquidate financial assets or the mortgage to the bank for cash flow; People began to avoid investment risk on the other hand, risky assets will be converted into low-risk assets.In this paper, from the empirical peFSective to explore influence of change of population age structure change of financial structure. As much as possible in order to accurately measure the effect of population age structure on the financial structure, this article in accordance with the preceding literature selected the economic growth rate, per capita income, the rate of inflation, monetary policy as control variables. Model in order to eliminate the endogenous and factors such as investment, savings, consumption and system’s habits, this paper fully pay attention to the model of endogenous and regional effect, using the dynamic system of generalized moment estimation model(SYS- GMM)estimate to avoid the endogenous and the regional effects caused by the deviation of the estimated results and time virtual variable is introduced to overcome the correlation between variables. In addition, based on the research in the process of classic mix using the panel data regression(OLS POOL) and dependent variable lag of fixed effects(FE)method of measurement, and the sample time interval equal two interval sample at the same time the stability testing.Based on the above theoretical analysis and combined with empirical research, thispaper concludes the main has the following three points: 1. When a country middle-aged population(aged 40-64) proportion rises, financial assets(stocks) increase in demand,promoting effect on rate of financial structure, namely the financial structure from predominantly Banks to give priority to with the securities market change; When a country youth population(20 to 39 years old) or(65 and older) larger elderly population, financial assets(stocks) reduced demand, inhibition rate of financial structure, from the financial structure is given priority to with the securities market to give priority to with bank of change; 2. The change of financial structure is the result of joint action of many factors,population age structure is one of the long-term and sustained impact factors. Sudden economic change(the outbreak of the financial crisis will impact the population age structure change on the impact of the financial structure, use measurement results appeared deviation, not meet the life cycle theory; 3. Due to the developing countries and developed countries in two aspects of "hardware" and "soft environment" there is a big gap, so the population of all ages to the influence degree of the financial structure, developing countries to weaker than the developed countries.Finally according to the results of the empirical study, and the related conclusions, this paper gives the further research direction.