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The paper analyzes the welfare consequences of insuring mortality risk by means of standard, fully funded Social … Security pensions when individuals wish to make transfers to their heirs. In the presence of uninsured mortality risk, within …
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We propose a new microeconomic explanation for the divergent experiences of economies in forming human capital. We suggest that the positive effect of a longer life expectancy on human capital formation arises from two separate effects: a life expectancy effect and a prolonged intergenerational...
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consumption due to faster economic growth. Consequently, the debate on rising health care expenditures should not predominantly be …
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may either choose to receive annuity payouts, calculated based on a mortality table agreed to at contract inception, or … receive the accumulated capital as a lump sum. Considering stochastic mortality improvements, such an option could be of … substantial value. Whenever mortality improves less than originally expected, the policyholder will choose the lump sum and buy an …
Persistent link: https://www.econbiz.de/10003828653
This paper analyzes the welfare effects of the Italian social security system in an economy with uncertainty on wages, financial market returns and life expectancy. The introduction of a pension system reproducing the Italian statutory scheme turns out to decrease ex-ante individual welfare,...
Persistent link: https://www.econbiz.de/10003888079