Longevity and Pay-as-you-Go pensions
This paper aims at investigating whether or not a utilitarian social planner should subsidize longevity-enhancing expenditures in an economy with a PAYG pension system. For that purpose, a simple two-period OLG model is developed, in which the length of the second period of life can be raised by private health spendings. Focussing on the steady-state, it is shown that the sign of the optimal subsidy on health expenditures tends to be negative when the replacement ratio is sufficiently large. Moreover, the optimal health subsidy is also shown to depend significantly on the longevity production process and on the production technology.
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- Chakraborty, Shankha, 2004.
"Endogenous lifetime and economic growth,"
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- Antoine Bommier, 2006. "Mortality, Time Preference and Life-Cycle Models," Working Papers hal-00441888, HAL.
- Helmuth Cremer & Firouz Gahvari & Pierre Pestieau, 2008.
"Pensions with heterogenous individuals and endogenous fertility,"
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Springer, vol. 21(4), pages 961-981, October.
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- CREMER, Helmuth & GAHVARI, Firouz & PESTIEAU, Pierre, 2006. "Pensions with heterogenous individuals and endogenous fertility," CORE Discussion Papers 2006015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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- Martin Browning & Lars Peter Hansen & James J. Heckman, 1999.
"Micro Data and General Equilibrium Models,"
99-10, University of Copenhagen. Department of Economics.
- repec:ebl:ecbull:v:9:y:2004:i:3:p:1-10 is not listed on IDEAS
- Davies, James B. & Kuhn, Peter, 1992. "Social security, longevity, and moral hazard," Journal of Public Economics, Elsevier, vol. 49(1), pages 91-106, October.
- Gregory Ponthiere, 2006. "Growth, Longevity and Public Policy," CESifo Working Paper Series 1780, CESifo Group Munich.
- repec:cup:cbooks:9780521806428 is not listed on IDEAS
- Rosa Aísa & Fernando Pueyo, 2004. "Endogenous longevity, health and economic growth: a slow growth for a longer life?," Economics Bulletin, AccessEcon, vol. 9(3), pages 1-10.
- repec:cup:cbooks:9780521001151 is not listed on IDEAS
- Tomas J. Philipson & Gary S. Becker, 1998. "Old-Age Longevity and Mortality-Contingent Claims," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 551-573, June.
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