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Mortality Decline, Impatience and Aggregate Wealth Accumulation with Risk-Sensitive Preferences

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Abstract

The paper discusses the impact of longevity extension on aggregate wealth accumulation, accounting for changes in individual behaviors as well as changes in population age structure. It departs from the stan- dard literature by adopting risk-sensitive preferences. Human impatience is then closely related to mortality rates and aggregate wealth accumula- tion appears to be much more sensitive to demographic factors than usually found. Illustrations are provided using historical mortality data from dif- ferent countries.

Suggested Citation

  • Antoine Bommier, 2014. "Mortality Decline, Impatience and Aggregate Wealth Accumulation with Risk-Sensitive Preferences," CER-ETH Economics working paper series 14/194, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  • Handle: RePEc:eth:wpswif:14-194
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    20. repec:reg:rpubli:282 is not listed on IDEAS
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    More about this item

    Keywords

    longevity; life-cycle savings; wealth accumulation; risk-sensitive pref- erences; risk aversion.;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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