Mortality and Life-Cycle Models

Antoine Bommier

Research Unit Working Papers from Laboratoire d'Economie Appliquee, INRA

Abstract: I compare two different ways of integrating mortality into life-cycle models: the standard additive model with time preferences, on the one hand, and a formulation that rules out the existence of time preference, but allows for risk aversion with respect to the length of life, on the other hand. These models are of similar complexity, but rather different in their fundamental assumptions. I show, however, that the latter formulation can reproduce all the predictions of the additive models with non-negative rates of time preference, as far as life-cycle behaviors under a single exogenous non-degenerate mortality pattern are considered. It leads, nonetheless, to radically different predictions for the effects of mortality changes.

Keywords: Intertemporal choice; Risk Aversion; Intertemporal Elasticity of Substitution. (search for similar items in EconPapers)
JEL-codes: D81 D91 J17 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2003-06
New Economics Papers: this item is included in nep-hea and nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inra.fr/Internet/Departements/ESR/UR/lea/documents/wp/wp0314.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lea:leawpi:0314

Access Statistics for this paper

More papers in Research Unit Working Papers from Laboratoire d'Economie Appliquee, INRA INRA-LEA, 48, Boulevard Jourdan, 75014 Paris, France.
Bibliographic data for series maintained by Madeleine Roux ( this e-mail address is bad, please contact ).