Appended Note 2-1 Estimation of the relationship of the size of general government total outlays to the aging rate and unemployment rates

   A panel analysis (fixed-effect model) has been conducted to estimate the impact of the aging rate and unemployment rates have on the size of general government total outlays (relative to the GDP) by applying the data gained on OECD countries into the following formula. The subject of this analysis amounted to 20 countries and the estimation was conducted for every five years between 1972 and 2002, or seven terms.