The Effect of Pension on the Optimized Life Expectancy and Lifetime Utility Level

Shin, Inyong (2012): The Effect of Pension on the Optimized Life Expectancy and Lifetime Utility Level.

Abstract

In this paper, we analyze the effect of a pension system on the life expectancy and the lifetime utility level using an optimal dynamic problem of individuals who live in continuous and finite time. Our model yields a number of intriguing results: 1) Life expectancy is not always proportional to lifetime utility. 2) The pension system can make life expectancy longer or shorter. 3) It is not always true that the pension system improves the lifetime utility level.

• Item Type: MPRA Paper
• Language: English
• Keywords: Pension system; Optimized life expectancy; Lifetime utility level; Health investments
• Subjects: H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I31 - General Welfare, Well-Being; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis

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