Longevity and public old-age pensions Academic Article uri icon

abstract

  • Using an overlapping generations model with endogenous but uncertain longevity, this article analyzes the effects of public old-age pensions on longevity choice and capital accumulation. When agents are not altruistic, increases in old-age pensions are longevity-neutral for golden rule economics and longevity-decreasing if interest rates exceed population growth, and saving effects are strictly negative. When agents are altruistic, longevity is independent of old-age pensions regardless of the interest rate-population growth relation. On the other hand, the longevity effect of a price subsidy on longevity extending expenditures or an advance in longevity extending technology is positive. Western Economic Association International.

published proceedings

  • ECONOMIC INQUIRY

author list (cited authors)

  • Liu, L. Q., Rettenmaier, A. J., & Saving, T. R.

citation count

  • 2

complete list of authors

  • Liu, LQ||Rettenmaier, AJ||Saving, TR

publication date

  • January 2005

publisher