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Unequal longevities and lifestyles transmission

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  • Grégory Ponthière

    (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris)

Abstract

Whereas studies on the optimal taxation under endogenous longevity assume a fixed heterogeneity of lifestyles, this paper considers the optimal tax policy in an economy where unequal longevities are the unintended outcome of differences in lifestyles, and where lifestyles are transmitted across generations. For that purpose, we develop a three-period OLG model where the population, who ignores the negative impact of excessive work on longevity, is partitioned in two groups with different tastes for leisure, and follows an adaptation/imitation process à la Bisin and Verdier (2001). The optimal short-run and long-run Pigouvian taxes on wages are shown to differ, because the latter correct agents'myopia, but also internalize intergenerational externalities due to the socialization process.

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Bibliographic Info

Paper provided by HAL in its series PSE Working Papers with number halshs-00586010.

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Date of creation: Dec 2008
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Handle: RePEc:hal:psewpa:halshs-00586010

Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00586010
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Related research

Keywords: longevity ; OLG model ; lifestyle ; socialization ; intergenerational externalities ; Pigouvian taxes;

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Cited by:
  1. Gregory Ponthiere, 2011. "Mortality, Family and Lifestyles," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 175-190, June.
  2. PESTIEAU, Pierre & PONTHIERE, Grégory, . "The public economics of increasing longevity," CORE Discussion Papers RP -2464, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Pierre Pestieau & Gregory Ponthiere, 2012. "Myopia, regrets, and risky behaviors," International Tax and Public Finance, Springer, vol. 19(2), pages 288-317, April.
  4. Ponthiere Gregory, 2013. "Long-Term Care, Altruism and Socialization," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(2), pages 429-471, October.
  5. Ponthiere, Gregory, 2011. "Existence and stability of overconsumption equilibria," Economic Modelling, Elsevier, vol. 28(1-2), pages 74-90, January.
  6. repec:hal:wpaper:halshs-00586241 is not listed on IDEAS
  7. repec:hal:wpaper:halshs-00564898 is not listed on IDEAS
  8. repec:hal:wpaper:halshs-00676492 is not listed on IDEAS
  9. repec:hal:wpaper:halshs-00622385 is not listed on IDEAS
  10. Javier Olivera, 2013. "Old-age Support and Demographic Transition in Developing Countries. A Cultural Transmission Model," Working Papers 201307, Geary Institute, University College Dublin.
  11. Laura Leker & Grégory Ponthière, 2012. "Education, Life Expectancy and Family Bargaining: The Ben-Porath Effect Revisited," PSE Working Papers halshs-00715104, HAL.
  12. Alberto Bisin & Thierry Verdier, 2010. "The Economics of Cultural Transmission and Socialization," NBER Working Papers 16512, National Bureau of Economic Research, Inc.
  13. repec:hal:wpaper:halshs-00715104 is not listed on IDEAS
  14. Ponthiere, Gregory, 2013. "Rationalizability and interactivity in evolutionary OLG models," Mathematical Social Sciences, Elsevier, vol. 66(2), pages 105-116.

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