Aging society, health and the environment

Carlotta Balestra () and Davide Dottori
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Carlotta Balestra: Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE)

No 2009037, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: Both environmental quality and health care expenditure are determinants of health and life expectancy, but the support for them appears to be different according to the electors' age, with a relatively larger support for health expenditure among the elderly as it is generally effective on a shorter horizon than environmental maintenance. With population aging, the political support for health care expenditure is then self-reinforcing. We cast this issue in an overlapping generations model with endogenous longevity, where lifespan depends on health care expenditure and environmental quality. We compare the long run outcomes for health care expenditure, environmental quality, lifespan, consumption and capital accumulation of an economy where agents vote over health spending and environmental maintenance, with those chosen by a social planner who takes into account also the welfare of future generations. The role played by other factors, such as the propensity for smoothing consumption or the degree of annuity markets, is also highlighted. Empirical evidence of age-biased environmental care is provided.

Keywords: population aging; endogenous longevity; environmental and health expenditure; annuity markets; inter-generational conflict; overlapping generations (search for similar items in EconPapers)
JEL-codes: D72 D91 H51 I12 I18 O40 Q20 Q28 (search for similar items in EconPapers)
Date: 2009-01-01
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Citations: View citations in EconPapers (9)

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Journal Article: Aging society, health and the environment (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2009037

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