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Mortality Decline and Aggregate Wealth Accumulation

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  • Bommier, Antoine

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.

Suggested Citation

  • Bommier, Antoine, 2009. "Mortality Decline and Aggregate Wealth Accumulation," TSE Working Papers 09-050, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:22173
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    References listed on IDEAS

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    12. Antoine Bommier, 2006. "Uncertain Lifetime And Intertemporal Choice: Risk Aversion As A Rationale For Time Discounting," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1223-1246, November.
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    16. repec:reg:rpubli:282 is not listed on IDEAS
    17. Antoine Bommier, 2008. "Rational Impatience ?," Working Papers hal-00441880, HAL.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    longevity; life cycle savings; wealth accumulation;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • J1 - Labor and Demographic Economics - - Demographic Economics

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