EconPapers    
Economics at your fingertips  
 

Optimal social insurance and health inequality

Volker Grossmann () and Holger Strulik ()

No 302, Center for European, Governance and Economic Development Research Discussion Papers from University of Goettingen, Department of Economics

Abstract: This paper integrates into public economics a biologically founded, stochastic process of individual ageing. The novel approach enables us to quantitatively characterize the optimal joint design of health and retirement policy behind the veil of ignorance for today and in response to future medical progress. Calibrating our model to Germany, we find that future progress in medical technology calls for a potentially drastic increase in health spending that typically should be accompanied by a lower pension savings rate and a higher retirement age. Interestingly, medical progress and higher health spending are in conflict with the goal to reduce health inequality.

Keywords: ageing; health expenditure; health inequality; social security system; retirement age (search for similar items in EconPapers)
JEL-codes: H50 I10 C60 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-hea, nep-ias and nep-pbe
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/149870/1/879268808.pdf (application/pdf)

Related works:
Working Paper: Optimal Social Insurance and Health Inequality (2015) Downloads
Working Paper: Optimal social insurance and health inequality (2015) Downloads
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:zbw:cegedp:302

Access Statistics for this paper

More papers in Center for European, Governance and Economic Development Research Discussion Papers from University of Goettingen, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2019-05-20
Handle: RePEc:zbw:cegedp:302