[Seminaire CREM] Social Insurance against a Short Life: Ante Mortem versus Post Mortem Policies. Faculté des Sciences Economiques Rennes

[Seminaire CREM] Social Insurance against a Short Life: Ante Mortem versus Post Mortem Policies. Faculté des Sciences Economiques Rennes, jeudi 17 octobre 2024.

[Seminaire CREM] Social Insurance against a Short Life: Ante Mortem versus Post Mortem Policies. Faculté des Sciences Economiques Rennes Jeudi 17 octobre, 12h15 Salle de Robien

Présentation de Grégory Ponthière, ENS CREM

**Résumé :**
Welfare States do not insure citizens against the risk of premature death, i.e., the risk of having a short life. Using a dynamic OLG model with risky lifetime, this paper compares two insurance devices reducing well-being volatility due to the risk of early death: (i) an ante-mortem age-based statistical discrimination policy that consists of an allowance given to all young adults (including the unidentified adults who will die early); (ii) a post-mortem subsidy on accidental bequests due to early death. Each policy is financed by taxing old-age income. Whereas each device can yield full insurance, the youth allowance is shown to imply a higher lifetime well-being at the stationary equilibrium. The marginal utility of consumption exceeding the marginal utility of giving when being dead, the youth allowances system is, despite imperfect targeting, a more efficient mechanism of insurance against the risk of early death.

Dates et horaires de début et de fin (année – mois – jour et heure) :
Début : 2024-10-17T12:15:00.000+02:00
Fin : 2024-10-17T13:45:00.000+02:00

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