Retirement Age and Health Expenditures
This Paper studies the design of pension benefits and contributions when an individual’s health status (disutility of continued activity) is endogenous and depends on consumption of health services. Health services can be subsidized (in a linear or non-linear way, depending on the information structure). Uniform public provision of health services is also considered. We show that as with exogenous health status, the second-best policy may induce early retirement for some types of individuals. Furthermore, whatever the specific information structure considered (individual levels or anonymous transactions) for health services, a subsidization of health expenditures obtains under fairly plausible assumptions. Third, when the information structure permits only linear subsidies, the case for uniform public provision of health services (which can be supplemented but not resold) appears to be quite strong.
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|Date of creation:||Sep 2004|
|Date of revision:|
|Publication status:||Published in Annales d'Économie et de Statistique, vol. 83-84, Institut national de la statistique et des études économiques, Paris, 2006, p. 167-186.|
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- Helmuth Cremer & Jean-Marie Lozachmeur & Pierre Pestieau, 2004.
"Optimal Retirement and Disability Benefits with Audit,"
FinanzArchiv: Public Finance Analysis,
Mohr Siebeck, Tübingen, vol. 60(3), pages 278-, September.
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- Helmuth Cremer & Jean-Marie Lozachmeur & Pierre Pestieau, 2002.
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CESifo Working Paper Series
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- CREMER, Helmuth & LOZACHMEUR, Jean-Marie & PESTIEAU, Pierre, . "Social security, retirement age and optimal income taxation," CORE Discussion Papers RP 1722, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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- Jonathan Gruber & David A. Wise, 1999. "Introduction to "Social Security and Retirement around the World"," NBER Chapters, in: Social Security and Retirement around the World, pages 1-35 National Bureau of Economic Research, Inc.
- Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1, 08.
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