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Longevity gap and public pensions: a minimal model

Author

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  • András Simonovits

    (ELKH KRTK KTI, BME MI, Budapest, Tóth Kálmán u 4, 1097, Hungary)

Abstract

The strong and increasing positive correlation between lifetime income and life expectancy (the longevity gap) has recently been widely studied. In this paper we employ the simplest, minimal model to demonstrate the impact of this long-neglected fact on the various types of public pension systems, especially on the issue of progressivity and neutrality.

Suggested Citation

  • András Simonovits, 2021. "Longevity gap and public pensions: a minimal model," CERS-IE WORKING PAPERS 2130, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:discpr:2130
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    File URL: https://kti.krtk.hu/wp-content/uploads/2021/07/KRTKKTIWP202130.pdf
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    Cited by:

    1. Simonovits, András & Lackó, Mária, 2021. "A várható élettartam-jövedelem kapcsolat egyszerű ökonometriai becslése - újraelosztás a nyugdíjrendszerben [A simple estimate of the longevity gap and redistribution in the pension system]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1162-1170.

    More about this item

    Keywords

    social security; public finance; income-dependent life expectation; longevity gap;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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