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Health Status Risks and the Efficiency of Social Security Systems

Author

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  • Yasuo Maeda
  • Akira Momota

Abstract

We studied the allocative efficiency of a social security system with earning tests focusing on the leisure–work choices of older men. Given empirical findings that health status and social security benefits are the most important determinants of such choices, we incorporated risks with respect to health status into an overlapping–generations model, and analysed how allocative efficiency was changed by the introduction of social security systems. It was found that the effects of a social security system can be broken down into particular categories and that a social security system improves efficiency when the pension system is small. JEL Classification Numbers: H55, I10, E40.

Suggested Citation

  • Yasuo Maeda & Akira Momota, 2002. "Health Status Risks and the Efficiency of Social Security Systems," The Japanese Economic Review, Japanese Economic Association, vol. 53(3), pages 350-367, September.
    • Handle: RePEc:bla:jecrev:v:53:y:2002:i:3:p:350-367
    DOI: 10.1111/1468-5876.00233
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    Cited by:

    1. Momota, Akira, 2003. "A retirement decision in the presence of a social security system," Journal of Macroeconomics, Elsevier, vol. 25(1), pages 73-86, March.

    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I10 - Health, Education, and Welfare - - Health - - - General
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General

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