Cremer, Helmuth and De Donder, Philippe (2014) Life expectancy heterogeneity and the political support for collective annuities. TSE Working Paper, n. 14-496

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Official URL : http://tse-fr.eu/pub/7636

Abstract

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.

Item Type: Monograph (Working Paper)
Language: English
Date: May 2014
Uncontrolled Keywords: generosity, redistributiveness, pay-as-you-go pensions, collective annuity, longevity, Kramer-Shepsle structure-induced equilibrium
JEL Classification: D78 - Positive Analysis of Policy-Making and Implementation
H55 - Social Security and Public Pensions
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 09 Jul 2014 18:15
Last Modified: 02 Apr 2021 15:49
OAI Identifier: oai:tse-fr.eu:7636
URI: https://publications.ut-capitole.fr/id/eprint/16202

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