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on Economics of Ageing |
| By: | Marie Louise Leroux; Pierre Pestieau; Grégory Ponthière |
| Abstract: | The study of optimal long-term care (LTC) social insurance is generally carried out under the utilitarian social criterion, which penalizes individuals who have a lower capacity to convert resources into well-being, such as dependent elderly individuals or prematurely dead individuals. This paper revisits the design of optimal LTC insurance while adopting the ex post egalitarian social criterion, which gives priority to the worst-o¤ in realized terms (i.e. once the state of nature has been revealed). Using a lifecycle model with risk about the duration of life and risk about old-age dependence, it is shown that the optimal LTC social insurance is quite sensitive to the postulated social criterion. The optimal second-best social insurance under the ex post egalitarian criterion involves, in comparison to utilitarianism, higher LTC benefits, lower pension benefits, a higher tax rate on savings, as well as a lower tax rate on labor earnings. |
| Keywords: | Long-Term Care,Social Insurance,Fairness,Mortality,Compensation,Egalitarianism, |
| JEL: | J14 I31 H55 |
| Date: | 2019–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2019s-23&r=all |
| By: | OSHIO Takashi; SHIMIZUTANI Satoshi; OISHI Akiko |
| Abstract: | This study examines how the decisions of the elderly regarding work/retirement and hours worked are related to the public pension and other related programs by constructing a single index of implicit tax (ITAX) that incorporates various factors related to institutional disincentives to working in Japan. Our regression model underscores that public pension and other related programs, taken together, discourage the elderly from working. Based on the regression results, we conduct simulations to show the extent to which three policy reforms, that is, (1) abolishing the earnings test for pension benefits; (2) raising the age of eligibility for pension benefits; and (3) extending the wage subsidy for the elderly, can encourage the elderly to stay in the labor force longer and work longer hours. The simulation results highlight the relative effectiveness of raising the age of eligibility. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:19080&r=all |
| By: | Marco Rossi (Department of Social Sciences and Economics, Sapienza University of Rome (IT)) |
| Abstract: | In this paper we studied the implications for welfare of an increasing share of adults in the population of cannabis. This demographic process is already significant in Italy, which is leading European greying: a decrease in birth rate and youth, and an increasing proportion of older people in the general population. We make the hypothesis here that adult users are going through a process of social integration and normalization, by which they are changing their patterns of use and socio-economic status. In order to verify the empirical relevance of the share of adults and the above hypotheses, we interviewed a targeted, non- representative, sample of cannabis users, namely visitors at the biggest Italian cannabis fair. Our data suggest that the role and weight of adults in the cannabis market is quantitatively significant and qualitatively different from that of younger people. We analyzed the links between the aging issue and the views supporting cannabis market restrictions (defined as paternalism, economics externalities, and moral externalities). Finally, we developed a very stylized model to see how the benefit of cannabis market restrictions decreases as the share of adults in the cannabis user population increases. |
| Keywords: | cannabis, aging, normalization, social integration, paternalism, externalities, welfare, regulation. |
| JEL: | E31 E52 E64 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:saq:wpaper:11/19&r=all |
| By: | Semedo Leite, Duarte Nuno; Härtl, Klaus |
| JEL: | C68 E27 E31 J11 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203514&r=all |
| By: | Jäger, Philipp; Giesecke, Matthias |
| JEL: | H24 H55 J14 J22 J26 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203498&r=all |
| By: | Vanya Horneff; Daniel Liebler; Raimond Maurer; Olivia S. Mitchell |
| Abstract: | In the wake of the financial crisis and continued volatility in international capital markets, there is growing interest in mechanisms that can protect people against retirement account volatility. This paper explores the consequences for savers’ wellbeing of implementing market-based retirement account guarantees, using a life cycle consumption and portfolio choice model where investors have access to stocks, bonds, and tax-qualified retirement accounts. We evaluate the case of German Riester plans adopted in 2002, an individual retirement account produce that includes embedded mandatory money-back guarantees. These guarantees influenced participant consumption, saving, and investment behavior in the higher interest rate environment of that era, and they have even larger impacts in a low-return world such as the present. Importantly, we conclude that abandoning these guarantees could enhance old-age consumption for over 80% of retirees, particularly lower earners, without harming consumption during the accumulation phase. Our results are of general interest for other countries implementing default investment options in individual retirement accounts, such as the U.S. 401(k) defined contribution plans and the Pan European Pension Product (PEPP) recently launched by the European Parliament. |
| JEL: | D14 D91 G11 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26406&r=all |
| By: | Dolls, Mathias; Krolage, Carla |
| JEL: | H55 J14 J18 J26 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203486&r=all |
| By: | Sanchez-Romero, Miguel; Lee, Ron; Fürnkranz-Prskawetz, Alexia |
| JEL: | E24 J10 J18 H55 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203628&r=all |
| By: | Finkler, Sebastian |
| JEL: | C15 H55 J14 J18 J26 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203518&r=all |
| By: | Schön, Matthias |
| JEL: | F21 H55 J11 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203527&r=all |
| By: | Urszula BÄ…kowska-Morawska (Wroclaw University of Economics) |
| Abstract: | In recent years, as a result of lifestyle changes, attracting more attention to health and living comfort, demographic changes and growing expenditure on preventive health care, the market offer reflecting expectations of senior citizens has been rapidly developing in Europe. The aging population, however, at the same time wealthy and aware of civilization threats, expect a different approach to meeting their needs. The comprehensive offer is supposed to include relaxation and leisure, comfort and safety of the destination, various forms of activities in free time, adequate medical care, physiotherapy, beauty treatment and a proper diet. In Germany, Austria, the Czech Republic or Poland the offer of spa enterprises, i.e. companies offering preventive health care services based on natural resources is currently subject to intensive modernization. The purpose of the study is to determine the directions of changes in the market offer ensuring meeting the needs of senior citizens in an optimal way. The research was based on interviews with chief executive officers, the observations made by the author – a manager herself and the analysis of the collected empirical material. As a result of the conducted research, new expectations of customers aged 55-70 were identified. They refer to the individualisation of health care during therapeutic stays, based on the offer developed taking into account due respect for the environment and targeted at a specific health problem. Such approach requires implementing significant changes in business models of the analysed enterprises. |
| Keywords: | offer for clients in health care, health and care management article, formatting, guidelines |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:smo:epaper:037ub&r=all |
| By: | Whyte, Richard; Connolly, Sheelah |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb201914&r=all |
| By: | Hott, Christian |
| JEL: | E21 J11 J26 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203642&r=all |
| By: | Nolan, Anne; Barrett, Alan |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb201916&r=all |
| By: | Pannenberg, Markus; Friehe, Tim |
| JEL: | D01 D91 J14 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203497&r=all |
| By: | Homrighausen, Pia; Lang, Julia |
| JEL: | D83 J21 J23 J64 J78 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203481&r=all |
| By: | Gustafsson, Johan (Department of Economics, Umeå University); Holmberg, Johan (Department of Economics, Umeå University) |
| Abstract: | This paper analyzes the dynamics of earnings over the life-cycle, based on Swedish data, and the evolution of permanent and transitory earnings inequality for 2002-2015. We use data on earnings from administrative records gathered in the ASTRID database. We find that features of the data does not match the predictions of the heterogeneous or restricted income profile models commonly applied in the earning dynamics literature and estimate an alternative permanent- transitory (PT) error components model. Analyzing the covariance structure of both male and female earnings, controlling for educational background, we find that the upward trend in permanent earnings inequality observed in Sweden during the 1990s does not seem to continue during the 2000s, and the financial crisis of 2008 did not have any major impact on the variability of earnings. We further simulate the accumulation of income pension entitlements and find that variations in pension entitlements is smaller among college educated workers. |
| Keywords: | Permanent-transitory; Income pension entitlements; earning dynamics; life-cycle inequality |
| JEL: | D31 H55 J30 |
| Date: | 2019–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0963&r=all |
| By: | Francisco José Goerlich Gisbert (Instituto Valenciano de Investigaciones Económicas - Ivie) |
| Abstract: | This paper investigates alternative measures of life expectancy that take into account distributional considerations in the length of life of the generation in a period life table. Virtually all the literature studying inequality in the length of life distribution has used inequality tools from the income distribution analysis, focusing on life expectancy and inequality as separate, albeit related, issues. We propose an alternative, integrated framework that allows us to combine both dimensions in a single index, and provide an axiomatic derivation that delivers the particular indexes to be used given a set of axioms. We illustrate the proposed index using data from the Human Mortality Database. Este trabajo investiga medidas alternativas de esperanza de vida que tienen en cuenta aspectos distributivos en relación a la duración de la vida en la generación de una tabla de vida de periodo. La práctica totalidad de la literatura que estudio la desigualdad en el tiempo de vida utiliza el instrumental derivado de la medición de la desigualdad en la distribución de la renta, centrándose en la esperanza de vida y la desigualdad como aspectos separados, aunque relacionados. El trabajo propone un marco alternativo integrado que permite combinar ambas dimensiones en un único índice, y proporciona una derivación axiomática que conduce a una familia concreta de índices. Los índices propuestos se ilustran con una aplicación a partir de la Human Mortality Database. |
| Keywords: | Esperanza de Vida, Tabla de Mortalidad, Índices de Duración, Duración de la Vida, Desigualdad Life expectancy, Life table, Duration, Indexes, Length of life, Inequality |
| JEL: | J10 J11 J14 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:ivi:wpasec:2019-02&r=all |