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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.

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  • Gregory Ponthiere, 2009. "Rectangularization And The Rise In Limit‐Longevity In A Simple Overlapping Generations Model," Manchester School, University of Manchester, vol. 77(1), pages 17-46, January.
    • Handle: RePEc:bla:manchs:v:77:y:2009:i:1:p:17-46
    DOI: 10.1111/j.1467-9957.2008.02085.x
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    Cited by:

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    2. Shin, Inyong, 2012. "The Effect of Pension on the Optimized Life Expectancy and Lifetime Utility Level," MPRA Paper 41374, University Library of Munich, Germany.
    3. Pierre Pestieau & Gregory Ponthiere, 2014. "Policy Implications of Changing Longevity," CESifo Economic Studies, CESifo, vol. 60(1), pages 178-212.
    4. David Croix & Pierre Pestieau & Grégory Ponthière, 2012. "How powerful is demography? The Serendipity Theorem revisited," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 899-922, July.
    5. Inyong Shin, 2018. "Could pension system make us happier?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1452342-145, January.

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