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Health investment, saving, and public policy
Author(s) -
Zhang Jie,
Zhang Junsen,
Leung Michael C.M.
Publication year - 2006
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.0008-4085.2006.00339.x
Subject(s) - life expectancy , subsidy , welfare , social security , economics , pension , investment (military) , social welfare , capital (architecture) , public economics , labour economics , business , finance , market economy , environmental health , political science , medicine , population , archaeology , law , history , politics
. This paper develops an overlapping‐generations model in which agents invest in health to prolong life in both working and retirement periods. It explores how unfunded social security with or without health subsidies affects life expectancy, economic growth, and welfare. In particular, by extending life at a possible cost of capital accumulation, health subsidies and a pay‐as‐you‐go pension can improve welfare, especially in the short run. JEL classification: I12, J14, J18, O11