Utilitarianism and unequal longevities : A remedy?
This paper re-examines a counterintuitive corollary of utilitarianism under unequal longevities: the tendency to redistribute resources from short-lived towards long-lived agents, against any intuition of compensation. It is shown that this corollary prevails not only under time-additive lifetime welfare, but, also, in general, under non-additive lifetime welfare, so that this counterintuitive redistributive corollary is a robust argument against utilitarianism. This paper studies a remedy to that counterintuitive corollary. This consists in imputing, when solving the social planner's problem, the consumption equivalent of a long life to the consumption of long- lived agents. We identify the conditions under which such a modified utilitarian optimum involves a compensation of short-lived agents with respect to the laissez-faire. That remedy is also applied to an economy with risky longevity, where short-lived agents are penalized not only by the limited opportunities to spread resources over time (due to a shorter life), but, also, by lost savings (due to unanticipated death).
|Date of creation:||01 Jul 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marie-Louise Leroux & Grégory Ponthière, 2008. "Optimal tax policy and expected longevity: A mean and variance utility approach," PSE Working Papers halshs-00586247, HAL.
- Marie-Louise Leroux & Pierre Pestieau & Gregory Ponthiere, 2011.
"Optimal linear taxation under endogenous longevity,"
Journal of Population Economics,
Springer, vol. 24(1), pages 213-237, January.
- LEROUX, Marie-Louise & PESTIEAU, Pierre & PONTHIERE, Grégory, . "Optimal linear taxation under endogenous longevity," CORE Discussion Papers RP -2268, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- LEROUX, Marie-Louise & PESTIEAU, Pierre & PONTHIÈRE, Grégory, 2008. "Optimal linear taxation under endogenous longevity," CORE Discussion Papers 2008051, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Winfried Pohlmeier & Luc Bauwens & David Veredas, 2007. "High frequency financial econometrics. Recent developments," ULB Institutional Repository 2013/136223, ULB -- Universite Libre de Bruxelles.
- repec:cup:cbooks:9780521681599 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2010043. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.