search query: @indexterm Life expectancy / total: 5
reference: 3 / 5
| Author: | Bloom, D.E. Canning, D. Graham, B. |
| Title: | Longevity and life-cycle savings |
| Journal: | Scandinavian Journal of Economics
2003 : VOL. 105:3, p. 319-338 |
| Index terms: | Investment Savings Life expectancy Health Models |
| Language: | eng |
| Abstract: | This study adds health and longevity to a standard model of life-cycle saving and shows that, under plausible assumptions, increases in life expectancy lead to higher savings rates at every age, even when retirement is endogenous. In a stationary population these higher savings rates are offset by increased old age dependency, but during the disequilibrium phase, when longevity is rising, the effect on aggregate savings rates can be substantial. There is found empirical support for this effect using a cross-country panel of national savings rates. |
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