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Old age or dependence. Which social insurance?

Author

Listed:
  • Yukihiro Nishimura

    (Graduate School of Economics, Osaka University)

  • Pierre Pestieau

    (CREPP, Universite de Li`ege, CORE)

Abstract

We consider a society where individuals differ according to their productivity and their risk of mortality and dependency. We show that ac-cording to the most reasonable estimates of correlations among these threecharacteristics, if one had to choose between a public pension system anda long-term care social insurance, the latter should be chosen by a utili-tarian social planner. With a Rawlsian planner, the balance between thetwo schemes does depend on the comparison between the probabilities ofthe worst off individual and the probabilities of the rest of society.

Suggested Citation

  • Yukihiro Nishimura & Pierre Pestieau, 2019. "Old age or dependence. Which social insurance?," Discussion Papers in Economics and Business 19-03, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1903
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    References listed on IDEAS

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    Cited by:

    1. Justina Klimaviciute & Pierre Pestieau, 2023. "The economics of long‐term care. An overview," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1192-1213, September.

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    More about this item

    Keywords

    long term care; pension; mortality risk; optimal taxation; liquidity constraints;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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