Department of Economics and Business Economics

Longevity, Growth and Intergenerational Equity - The Deterministic Case

Research output: Working paperResearch

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  • Wp10 19

    Final published version, 539 KB, PDF document

  • School of Economics and Management
Challenges raised by ageing (increasing longevity) have prompted policy debates
featuring policy proposals justified by reference to some notion of intergenerational
equity. However, very different policies ranging from pre-savings
to indexation of retirement ages have been justified in this way. We develop an
overlapping generations model in continuous time which encompasses different
generations with different mortality rates and thus longevity. Allowing for both
trend increases in longevity and productivity, we address the issue of intergenerational
equity under a utilitarian criterion when future generations are better off
in terms of both material and non-material well being. Increases in productivity
and longevity are shown to have very different implications for intergenerational
distribution.
Original languageEnglish
Place of publicationAarhus
PublisherInstitut for Økonomi, Aarhus Universitet
Number of pages55
Publication statusPublished - 2010

    Research areas

  • OLG models, demographics, longevity, taxes, transfers, retirement age, dependency ratio, healthy ageing, decentralization

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