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The Effect of Pension on the Optimized Life Expectancy and Lifetime Utility Level

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  • Shin, Inyong

Abstract

In this paper, we analyze the effect of a pension system on the life expectancy and the lifetime utility level using an optimal dynamic problem of individuals who live in continuous and finite time. Our model yields a number of intriguing results: 1) Life expectancy is not always proportional to lifetime utility. 2) The pension system can make life expectancy longer or shorter. 3) It is not always true that the pension system improves the lifetime utility level.

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File URL: http://mpra.ub.uni-muenchen.de/41375/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41375.

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Date of creation: Sep 2012
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Handle: RePEc:pra:mprapa:41375

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Keywords: Pension system; Optimized life expectancy; Lifetime utility level; Health investments;

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  7. Zhang, Junsen & Zhang, Jie & Lee, Ronald, 2001. "Mortality decline and long-run economic growth," Journal of Public Economics, Elsevier, vol. 80(3), pages 485-507, June.
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  24. Martin S. Feldstein & Jeffrey B. Liebman, 2002. "Introduction to "The Distributional Aspects of Social Security and Social Security Reform"," NBER Chapters, in: The Distributional Aspects of Social Security and Social Security Reform, pages 1-10 National Bureau of Economic Research, Inc.
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