FACULTY PAPER SERIES The Impact of the Young-old and the Old-old on a Small Rural Region: An Application of the Wisconsin Economic Impact Modeling System

The literature on the economic and fiscal impacts of in-migrating retirees on rural communities concentrates on the young, newly-retired. An issue not systematically addressed are the impacts on the communities as these retirees age. The Wisconsin Economic Impact Modeling System, a county level conjoined input-output/econometrics simulation model, is used to assess the impact of an aging rural population. Using data from the US Bureau of Labor Statistics' Consumer Expenditure Survey, profiles of two household types are constructed and used to simulate the economic impact of an additional 500 elderly households into a small rural economy. Household types vary by age and, as a result, have different income levels and expenditure patterns. As hypothesized, the magnitude and nature of impacts is in direct proportion to relative household size and income level.