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Public Development Expenditure and Life Expectancy of Older Adults in India: Evidence from an Auto-Regressive
1Department of Economics, Christ University, Bangalore, India.
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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.
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