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The Effects of A Continuous Increase in Lifetime on Saving
Author(s) -
Kageyama Junji
Publication year - 2003
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/1475-4991.00081
Subject(s) - life expectancy , economics , cohort , demographic economics , expectancy theory , cohort effect , econometrics , medicine , environmental health , statistics , population , mathematics , management
This paper examines the effects on saving of a continuous increase in lifetime and shows that a greater increase in lifetime leads to greater savings. This is because an increase in lifetime is accompanied by uncertainty and because the working‐age cohort whose lifetime is longer saves more than the retired cohort dissaves. This result is tested empirically with cross‐country data, and it is confirmed that an increase in life expectancy has a positive effect on various saving rates.