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Mortality Contingent Claims, Health Care, and Social Insurance

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  • Philipson, Tomas J.
  • Becker, Gary S.

Abstract

This paper analyzes the savings and health care impacts of mortality contingent claims, defined here as income measures, such as annuities and life-insurance, under which earned income is contingent on the length of one's life. The postwar increase in mandatory annuity and life-insurance programs, as well as the rapid increase in life-expectancy, motivates a better understanding of the effects that mortality contingent claims have on resources devoted to life-extension. We analyze the incentives that such claims imply for life-extension when resources may affect mortality endogenously and argue that these incentives dramatically alter the standard conclusions obtained when mortality is treated exogenously.
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Suggested Citation

  • Philipson, Tomas J. & Becker, Gary S., 1996. "Mortality Contingent Claims, Health Care, and Social Insurance," Working Papers 129, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    • Handle: RePEc:zbw:cbscwp:129
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    References listed on IDEAS

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    Cited by:

    1. Papageorgiou, Chris & Savvides, Andreas & Zachariadis, Marios, 2007. "International medical technology diffusion," Journal of International Economics, Elsevier, vol. 72(2), pages 409-427, July.
    2. Chris Papageorgiou & Andreas Savvides & Marios Zachariadis, 2004. "International Medical R&D Spillovers," Departmental Working Papers 2004-03, Department of Economics, Louisiana State University.
    3. Zsolt Becsi, 2001. "Longevity and the Life Cycle," Departmental Working Papers 2001-12, Department of Economics, Louisiana State University.
    4. Sven H. Sinclair & Kent A. Smetters, 2004. "Health Shocks and the Demand for Annuities: Technical Paper 2004-09," Working Papers 15868, Congressional Budget Office.
    5. Arthur Hau, 2001. "Precautionary Saving and Mortality-Contingent Social Insurance Programs," Public Finance Review, , vol. 29(1), pages 61-82, January.

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    • I1 - Health, Education, and Welfare - - Health

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