Compensating the dead? Yes we can!
AbstractAn early death is, undoubtedly, a serious disadvantage. However, the compensation of short-lived individuals has remained so far largely unexplored, probably because it appears infeasible. Indeed, short-lived agents can hardly be identified ex ante, and cannot be compensated ex post. We argue that, despite the above difficulties, a compensation can be carried out by encouraging early consumption in the life cycle. In a model with heterogeneous preferences and longevities, we show how a specific social criterion can be derived from intuitive principles, and we study the corresponding optimal policy under various informational assumptions. We also study the robustness of our solution to alternative types of preferences and savings policies.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2010066.
Date of creation: 01 Oct 2010
Date of revision:
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compensation; longevity; mortality; fairness; redistribution;
Other versions of this item:
- Marc Fleurbaey & Marie-Louise Leroux & Grégory Ponthière, 2010. "Compensating the dead? Yes we can!," PSE Working Papers halshs-00564934, HAL.
- Marc Fleurbaey & Marie-Louise Leroux & Grégory Ponthière, 2010. "Compensating the Dead? Yes we can!," IDEP Working Papers 1005, Institut d'economie publique (IDEP), Marseille, France, revised 20 Oct 2010.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
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- repec:hal:wpaper:halshs-00746913 is not listed on IDEAS
- Gaëtan Delprat & Marie-Louise Leroux & Pierre-Carl Michaud, 2013.
"Evidence on Individual Preferences for Longevity Risk,"
CESifo Working Paper Series
4196, CESifo Group Munich.
- G. Delprat & M.-L. Leroux & P.-C. Michaud, 2013. "Evidence on Individual Preferences for Longevity Risk," Cahiers de recherche 1304, CIRPEE.
- Gregory Ponthiere, 2013.
"Fair Accumulation under Risky Lifetime,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 60(2), pages 210-230, 05.
- Delprat, Gaëtan & Leroux, Marie-Louise & Michaud, Pierre-Carl, 2013. "Evidence on Individual Preferences for Longevity Risk," IZA Discussion Papers 7317, Institute for the Study of Labor (IZA).
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