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Econometric analysis of macroeconomic to age-specific mortality rate in Malaysia: evidence from panel data

Human mortality is unanticipated and unavoidable, particularly in light of the recent COVID-19 pandemic. Insurance companies, actuaries, financial institutions, demographers, and the government may suffer catastrophic losses as a result of imprecise mortality estimates. Understanding the factors tha...

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Main Authors: Edrus, Robiaatul Adawiah, Siri, Zailan, Haron, Mohd Azmi, Mohd Safari, Muhammad Aslam, A. Kaabar, Mohammed K.
Format: Article
Published: Hindawi 2022
Online Access:http://psasir.upm.edu.my/id/eprint/101044/
https://www.hindawi.com/journals/jmath/2022/8268177/
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spelling my.upm.eprints.1010442023-06-19T06:29:56Z http://psasir.upm.edu.my/id/eprint/101044/ Econometric analysis of macroeconomic to age-specific mortality rate in Malaysia: evidence from panel data Edrus, Robiaatul Adawiah Siri, Zailan Haron, Mohd Azmi Mohd Safari, Muhammad Aslam A. Kaabar, Mohammed K. Human mortality is unanticipated and unavoidable, particularly in light of the recent COVID-19 pandemic. Insurance companies, actuaries, financial institutions, demographers, and the government may suffer catastrophic losses as a result of imprecise mortality estimates. Understanding the factors that contribute to mortality at the population level can help the government improve its efforts to promote health and reduce health inequalities. Consequently, the present study utilizes an econometrics model to estimate Malaysia’s mortality rate, with macroeconomic factors as explanatory variables. The present study employed the unemployment rate, pension liabilities, gross domestic product, education expenditure, and healthcare expenditure as explanatory variables. The empirical results imply that the fixed effects model is feasible when using panel data across specific age groups. Moreover, the fixed effects model is devoid of cross-sectional dependency, heteroscedasticity, and serial correlation. The findings reveal that the unemployment rate, gross domestic product, and education expenditure all have a significant influence on the mortality rate. However, pension liabilities and health expenditure have an insignificant relationship with the mortality rate. The fixed effects model is demonstrated to be a robust model that fits the Malaysian scenario with an R-squared of approximately 84.69%. The present study is novel due to the fact that the model established between explanatory variables and the mortality rate shows a significant relationship, which can be helpful in forecasting the mortality at population level as a preparation for the post-COVID-19 mortality. The present study aims to contribute to the development of an effective support mechanism by rectifying Malaysia’s socioeconomic inequalities in order to mitigate the COVID-19 increase in mortality rate. Therefore, the Malaysian government is strongly encouraged to examine its expenditure on education and gross domestic product in order to improve the mortality rate, particularly among the adult and older population. Hindawi 2022-02-18 Article PeerReviewed Edrus, Robiaatul Adawiah and Siri, Zailan and Haron, Mohd Azmi and Mohd Safari, Muhammad Aslam and A. Kaabar, Mohammed K. (2022) Econometric analysis of macroeconomic to age-specific mortality rate in Malaysia: evidence from panel data. Journal of Mathematics, 2022. art. no. 8268177. pp. 1-13. ISSN 2314-4629; ESSN: 2314-4785 https://www.hindawi.com/journals/jmath/2022/8268177/ 10.1155/2022/8268177
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
description Human mortality is unanticipated and unavoidable, particularly in light of the recent COVID-19 pandemic. Insurance companies, actuaries, financial institutions, demographers, and the government may suffer catastrophic losses as a result of imprecise mortality estimates. Understanding the factors that contribute to mortality at the population level can help the government improve its efforts to promote health and reduce health inequalities. Consequently, the present study utilizes an econometrics model to estimate Malaysia’s mortality rate, with macroeconomic factors as explanatory variables. The present study employed the unemployment rate, pension liabilities, gross domestic product, education expenditure, and healthcare expenditure as explanatory variables. The empirical results imply that the fixed effects model is feasible when using panel data across specific age groups. Moreover, the fixed effects model is devoid of cross-sectional dependency, heteroscedasticity, and serial correlation. The findings reveal that the unemployment rate, gross domestic product, and education expenditure all have a significant influence on the mortality rate. However, pension liabilities and health expenditure have an insignificant relationship with the mortality rate. The fixed effects model is demonstrated to be a robust model that fits the Malaysian scenario with an R-squared of approximately 84.69%. The present study is novel due to the fact that the model established between explanatory variables and the mortality rate shows a significant relationship, which can be helpful in forecasting the mortality at population level as a preparation for the post-COVID-19 mortality. The present study aims to contribute to the development of an effective support mechanism by rectifying Malaysia’s socioeconomic inequalities in order to mitigate the COVID-19 increase in mortality rate. Therefore, the Malaysian government is strongly encouraged to examine its expenditure on education and gross domestic product in order to improve the mortality rate, particularly among the adult and older population.
format Article
author Edrus, Robiaatul Adawiah
Siri, Zailan
Haron, Mohd Azmi
Mohd Safari, Muhammad Aslam
A. Kaabar, Mohammed K.
spellingShingle Edrus, Robiaatul Adawiah
Siri, Zailan
Haron, Mohd Azmi
Mohd Safari, Muhammad Aslam
A. Kaabar, Mohammed K.
Econometric analysis of macroeconomic to age-specific mortality rate in Malaysia: evidence from panel data
author_facet Edrus, Robiaatul Adawiah
Siri, Zailan
Haron, Mohd Azmi
Mohd Safari, Muhammad Aslam
A. Kaabar, Mohammed K.
author_sort Edrus, Robiaatul Adawiah
title Econometric analysis of macroeconomic to age-specific mortality rate in Malaysia: evidence from panel data
title_short Econometric analysis of macroeconomic to age-specific mortality rate in Malaysia: evidence from panel data
title_full Econometric analysis of macroeconomic to age-specific mortality rate in Malaysia: evidence from panel data
title_fullStr Econometric analysis of macroeconomic to age-specific mortality rate in Malaysia: evidence from panel data
title_full_unstemmed Econometric analysis of macroeconomic to age-specific mortality rate in Malaysia: evidence from panel data
title_sort econometric analysis of macroeconomic to age-specific mortality rate in malaysia: evidence from panel data
publisher Hindawi
publishDate 2022
url http://psasir.upm.edu.my/id/eprint/101044/
https://www.hindawi.com/journals/jmath/2022/8268177/
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score 13.211869

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