Abstract
The paper discusses the impact of longevity extension on aggregate wealth accumulation, accounting for changes in individual behaviors as well as changes in population age structure. It departs from the standard literature by adopting a formulation of individual preferences that accounts for temporal risk aversion. Human impatience is then closely related to mortality rates and aggregate wealth accumulation appears to be much more sensitive to demographic factors than with the traditional approach. Illustrations are provided using historical mortality data from different countries.
Keywords
longevity; life cycle savings; wealth accumulation;
JEL codes
- D91: Intertemporal Household Choice • Life Cycle Models and Saving
- E21: Consumption • Saving • Wealth
- J1: Demographic Economics
Reference
Antoine Bommier, “Mortality Decline and Aggregate Wealth Accumulation”, TSE Working Paper, n. 09-050, June 16, 2009.
See also
Published in
TSE Working Paper, n. 09-050, June 16, 2009