Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
957184 | Journal of Economic Theory | 2012 | 23 Pages |
Abstract
Many studies specify human mortality patterns parametrically, with a parameter change affecting mortality rates at different ages simultaneously. Motivated by the stylized fact that a mortality decline affects primarily younger people in the early phase of mortality transition but mainly older people in the later phase, we study how a mortality change at an arbitrary age affects optimal retirement age. Using the Volterra derivative for a functional, we show that mortality reductions at older ages delay retirement unambiguously, but that mortality reductions at younger ages may lead to earlier retirement due to a substantial increase in the individualʼs expected lifetime human wealth.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Hippolyte dʼAlbis, Sau-Him Paul Lau, Miguel Sánchez-Romero,