On the fiscal treatment of life expectancy related choices
Julio Dávila and
Marie-Louise Leroux
Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne
Abstract:
In an overlapping generations economy setup we show that, if individuals can improve their life expectancy by exerting some effort, costly in terms of either resources or utility, the competitive equilibrium steady state differs from the first best steady state. This is due to the fact that under perfect competition individuals fail to anticipate the impact of their longevity-enhancing effort on the return of their annuitized savings. We indentify the policy instruments required to implement the first-best into a competitive equilibrium and show that they are specific to the form, whether utility or resources, that the effort takes
Keywords: Life expectancy; health expenditures; taxation (search for similar items in EconPapers)
JEL-codes: D91 H21 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2009-09
New Economics Papers: this item is included in nep-dge and nep-hea
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ftp://mse.univ-paris1.fr/pub/mse/CES2009/09057.pdf (application/pdf)
Related works:
Working Paper: On the fiscal treatment of life expectancy related choices (2009)
Working Paper: On the fiscal treatment of life expectancy related choices (2009)
Working Paper: On the fiscal treatment of life expectancy related choices (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:09057
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