Demographics and International Investment

30 Pages Posted: 31 Oct 2005 Last revised: 7 Aug 2020

See all articles by Claude B. Erb

Claude B. Erb


Campbell R. Harvey

Duke University - Fuqua School of Business; National Bureau of Economic Research (NBER)

Tadas E. Viskanta

Ritholtz Wealth Management

Date Written: November 1, 1996


Population demographics impact both the time-series and cross-section of expected asset returns. A number of theories link the average age of a population to expected market returns. For example, Bakshi and Chen (1994) argue that an older population will demand a higher premium on equity investment because their risk aversion is higher. We argue that, in an international context, population demographics are more likely to reveal information about the risk exposure of a particular country. Our evidence supports the risk hypothesis.

This is the last working paper version of our 1997 Financial Analysts Journal article.

Keywords: global investment, population, international stock returns, asset allocation, active management, risk premium

JEL Classification: G15, G12, G11, J11

Suggested Citation

Erb, Claude B. and Harvey, Campbell R. and Viskanta, Tadas, Demographics and International Investment (November 1, 1996). Available at SSRN: or

Claude B. Erb

TR ( email )

CA 90272
United States

Campbell R. Harvey (Contact Author)

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
919-660-7768 (Phone)


National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Tadas Viskanta

Ritholtz Wealth Management ( email )

24 West 40th Street
New York, NY 10018
United States

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