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Rectangularization And The Rise In Limit-Longevity In A Simple Overlapping Generations Model

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  • GREGORY PONTHIERE

Abstract

Whereas overlapping generations (OLG) models with endogenous longevity do not distinguish between the rectangularization phenomenon and the rise in limit-longevity, these constitute two different demographic phenomena requiring a distinct modelling. This paper presents a two-period OLG model where the probability of survival from the first to the second period, as well as the maximum length of life, are endogenously determined and influenced by public policies. The issues of existence, uniqueness and stability of a steady state are studied. It is shown that the transition towards the steady state exhibits, under mild conditions, the observed succession of phases of rectangularization and derectangularization of survival curves. Copyright © 2009 The Author. Journal compilation © 2009 Blackwell Publishing Ltd and The University of Manchester.

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  • Gregory Ponthiere, 2009. "Rectangularization And The Rise In Limit-Longevity In A Simple Overlapping Generations Model," Manchester School, University of Manchester, vol. 77(1), pages 17-46, January.
  • Handle: RePEc:bla:manchs:v:77:y:2009:i:1:p:17-46
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    Cited by:

    1. Pierre Pestieau & Gregory Ponthiere, 2012. "The Public Economics of Increasing Longevity," Hacienda Pública Española, IEF, vol. 200(1), pages 41-74, March.
    2. Pierre Pestieau & Grégory Ponthiere, 2012. "On the Policy Implications of Changing Longevity," CESifo Working Paper Series 3926, CESifo Group Munich.
    3. David Croix & Pierre Pestieau & Grégory Ponthière, 2012. "How powerful is demography? The Serendipity Theorem revisited," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 899-922, July.
    4. Pierre Pestieau & Grégory Ponthière, 2012. "The public economics of increasing longevity," Working Papers halshs-00676492, HAL.
    5. Shin, Inyong, 2012. "The Effect of Pension on the Optimized Life Expectancy and Lifetime Utility Level," MPRA Paper 41374, University Library of Munich, Germany.
    6. Shin, Inyong, 2015. "Could pension system make us happier?," MPRA Paper 65116, University Library of Munich, Germany.

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