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Rectangularization And The Rise In Limit-Longevity In A Simple Overlapping Generations Model

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  • GREGORY PONTHIERE

Abstract

Whereas overlapping generations (OLG) models with endogenous longevity do not distinguish between the rectangularization phenomenon and the rise in limit-longevity, these constitute two different demographic phenomena requiring a distinct modelling. This paper presents a two-period OLG model where the probability of survival from the first to the second period, as well as the maximum length of life, are endogenously determined and influenced by public policies. The issues of existence, uniqueness and stability of a steady state are studied. It is shown that the transition towards the steady state exhibits, under mild conditions, the observed succession of phases of rectangularization and derectangularization of survival curves. Copyright � 2009 The Author. Journal compilation � 2009 Blackwell Publishing Ltd and The University of Manchester.

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Bibliographic Info

Article provided by University of Manchester in its journal The Manchester School.

Volume (Year): 77 (2009)
Issue (Month): 1 (01)
Pages: 17-46

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Handle: RePEc:bla:manchs:v:77:y:2009:i:1:p:17-46

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Cited by:
  1. Pierre Pestieau & Grégory Ponthière, 2012. "The public economics of increasing longevity," Working Papers halshs-00676492, HAL.
  2. David Croix & Pierre Pestieau & Grégory Ponthière, 2012. "How powerful is demography? The Serendipity Theorem revisited," Journal of Population Economics, Springer, vol. 25(3), pages 899-922, July.
  3. Pierre Pestieau & Gregory Ponthiere, 2012. "The Public Economics of Increasing Longevity," Hacienda Pública Española, IEF, vol. 200(1), pages 41-74, March.
  4. Pierre Pestieau & Grégory Ponthiere, 2012. "On the Policy Implications of Changing Longevity," CESifo Working Paper Series 3926, CESifo Group Munich.

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