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Differential mortality and social security

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Bommier, Antoine [Toulouse School of Economics] Leroux, Marie-Louise [UCL] Lozachmeur, Jean-Marie [Toulouse School of Economics]

This paper studies the normative problem of redistribution between individuals who differ in their lifespans. We discuss aspects related to the objective function and argue that aversion to multiperiod inequality should be taken into account. Then, we study the properties of the social optimum both with full information and with asymmetric information. We highlight the role of aversion to multiperiod inequality and show that it has substantial consequences on the design of Social Security schemes. In particular, we show that for a low (resp. high) aversion to multiperiod inequality, a negative (resp. positive) implicit tax rate on continued activity is desirable.

Document type Article de périodique (Journal article) – Article de recherche
Access type Accès interdit
Publication date 2011
Language Anglais
Journal information "Canadian Journal of Economics" - Vol. 44, no. 1, p. 273-289 (2011)
Peer reviewed yes
Publisher Wiley-Blackwell Publishing, Inc. ((United States) Malden)
issn 0008-4085
Publication status Publié
Affiliations Toulouse School of Economics - GREMAQ-CNRS
UCL - EUEN/CORE - Center for operations research and econometrics
Toulouse School of Economics - GREMAQ-CNRS and IDEI
Links
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Bibliographic reference Bommier, Antoine ; Leroux, Marie-Louise ; Lozachmeur, Jean-Marie. Differential mortality and social security. In: Canadian Journal of Economics, Vol. 44, no. 1, p. 273-289 (2011)
Permanent URL http://hdl.handle.net/2078.1/73630