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Health investment, saving, and public policy

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  • Jie Zhang
  • Junsen Zhang
  • Michael Leung

Abstract

This paper develops an overlapping-generations model in which agents invest in health to prolong life in both working and retirement periods. It explores how unfunded social security with or without health subsidies affects life expectancy, economic growth, and welfare. In particular, by extending life at a possible cost of capital accumulation, health subsidies and a pay-as-you-go pension can improve welfare, especially in the short run.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 39 (2006)
Issue (Month): 1 (February)
Pages: 68-93

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Handle: RePEc:cje:issued:v:39:y:2006:i:1:p:68-93

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Cited by:
  1. Grégory Ponthière, 2009. "Existence and stability of overconsumption equilibria," PSE Working Papers halshs-00575015, HAL.
  2. LEROUX, Marie-Louise & PESTIEAU, Pierre & PONTHIERE, Grégory, . "Longevity, genes and efforts: an optimal taxation approach to prevention," CORE Discussion Papers RP -2309, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. JOUVET, Pierre-André & PESTIEAU, Pierre & PONTHIERE, Grégory, . "Longevity and environmental quality in an OLG model," CORE Discussion Papers RP -2377, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Marie-Louise Leroux & Pierre Pestieau & Grégory Ponthière, 2008. "Optimal linear taxation under endogenous longevity," PSE Working Papers halshs-00586241, HAL.
  5. Andersen, Torben M & Bhattacharya, Joydeep, 2012. "A Dynamic Efficiency Rationale for Public Investment in the Health of the Young," Staff General Research Papers 35503, Iowa State University, Department of Economics.
  6. Hansen, Casper Worm & Lønstrup, Lars, 2009. "The optimal legal retirement age in an OLG model with endogenous labour supply," Discussion Papers of Business and Economics 5/2009, Department of Business and Economics, University of Southern Denmark.
  7. Marie-Louise Leroux & Pierre Pestieau & Grégory Ponthiere, 2009. "Should we Subsidize Longevity?," CESifo Working Paper Series 2614, CESifo Group Munich.
  8. Khaled Elmawazini & Gamal Atallah & Sonny Nwankwo & Yazid Dissou, 2013. "US Foreign Affiliates, Technology Diffusion and Host Country Human Development: Human Development Index versus Human Capital," Industry and Innovation, Taylor & Francis Journals, vol. 20(1), pages 69-91, January.
  9. repec:hal:wpaper:halshs-00586236 is not listed on IDEAS
  10. repec:hal:wpaper:halshs-00586241 is not listed on IDEAS
  11. repec:hal:wpaper:halshs-00586010 is not listed on IDEAS

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