Référence

Helmuth Cremer et Philippe De Donder, « Life expectancy heterogeneity and the political support for collective annuities », The Scandinavian Journal of Economics, vol. 118, juillet 2016, p. 594–615.

Résumé

Individuals, differing in productivity and life expectancy, vote over the size and type of a collective annuity. Its type is represented by the fraction of the contributive (Bismarckian) component (based on the worker’s past earnings) as opposed to the non- contributive (Beveridgean) part (based on average contribution). The equilibrium collective annuity is either a large mostly Bismarckian program, a smaller pure Beveridgean one (in accordance with empirical evidence), or nil. A larger correlation between longevity and productivity, or a larger average life expectancy, both make the equilibrium collective annuity program more Beveridgean, although at the expense of its size.

Mots-clés

generosity; redistributiveness; pay-as-you-go pensions; collective annuity; longevity; Kramer-Shepsle structure-induced equilibrium;

Codes JEL

  • D78: Positive Analysis of Policy Formulation and Implementation
  • H55: Social Security and Public Pensions

Partenaire de recherche

Scor Chair

Thème de recherche

Longevity Risk, Long Term Care (Social) Insurance

Remplace

Helmuth Cremer et Philippe De Donder, « Life expectancy heterogeneity and the political support for collective annuities », IDEI Working Paper, n° 827, mai 2014.