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Longevity and Life-cycle Savings Author info | Abstract | Publisher info | Download info | Related research | Statistics David E. Bloom
David Canning
Bryan Graham
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We add health and longevity to a standard model of life-cycle saving and show that, under plausible assumptions, increases in life expectancy lead to higher savings rates at every age, even when retirement is endogenous. In a stationary population these higher savings rates are offset by increased old age dependency, but during the disequilibrium phase, when longevity is rising, the effect on aggregate savings rates can be substantial. We find empirical support for this effect using a cross-country panel of national savings rates. Copyright The editors of the "Scandinavian Journal of Economics", 2003 .
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Article provided by Blackwell Publishing in its journal The Scandinavian Journal of Economics .
Volume (Year): 105 (2003)
Issue (Month): 3 (09)
Pages: 319-338
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Handle: RePEc:bla:scandj:v:105:y:2003:i:3:p:319-338Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0347-0520
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