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

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GREGORY PONTHIERE

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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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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9957.2008.02085.x
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Publisher 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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This page was last updated on 2009-11-22.

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