Longevity, retirement, and capital accumulation in a recursive model with an application to mandatory retirement

Macroeconomic Dynamics

Volumn 13, Issue 3, 2009, Pages 327-348

  Zhang, Jie ^a,b   Zhang, Junsen ^c  

^a NATIONAL UNIVERSITY OF SINGAPORE   (Singapore)

^b UNIVERSITY OF QUEENSLAND   (Australia)

^c CHINESE UNIVERSITY OF HONG KONG   (Hong Kong)

Author keywords

Growth; Life Cycle Saving; Longevity; Retirement

Indexed keywords

EID: 70350475711     PISSN: 13651005     EISSN: 14698056     Source Type: Journal    
DOI: 10.1017/S1365100508080073     Document Type: Article

References (33)

1. Ashenfelter, Orley and David Card (2002) Did the elimination of mandatory retirement affect faculty retirement? American Economic Review 92, 957-980.
2. Auerbach, Alan J. and Laurence J. Kotlikoff (1992) The impact of the demographic transition on capital formation. Scandinavian Journal of Economics 94, 281-295.
3. Barro, Robert J. and Xavier Sala-i-Martin (1995) Economic Growth. New York: McGraw-Hill.
4. Becker, Gary S., Kevin M. Murphy, and Robert Tamura (1990) Human capital, fertility, and economic growth. Journal of Political Economy 98, S12-S37.
5. Blinder, Alan S., Roger H. Gordon, and Donald E. Wise (1980). Reconsidering the work incentive effects of social security. National Tax Journal 34, 431-442.
6. Bloom, David E., David Canning, and Bryan Graham (2003) Longevity and life-cycle savings. Scandinavian Journal of Economics 105, 319-338.
7. Boskin, Michael J. (1977) Social security and retirement decisions. Economic Inquiry 15, 1-23.
8. Boucekkine, Raouf,David de la Croix, andOmar Licandro (2002)Vintage human capital, demographic trends, and endogenous growth. Journal of Economic Theory 104, 340-375.
9. de la Croix, David and Omar Licandro (1999) Life expectancy and endogenous growth. Economics Letters 65, 255-263.
10. Echevarŕýa, Cruz A. (2004) Life expectancy, schooling time, retirement, and growth. Economic Inquiry 42, 602-617.
11. Eckstein, Zvi and Kenneth I.Wolpin (1985) Endogenous fertility and optimal population size. Journal of Public Economics 27, 93-106.
12. Ehrlich, Isaac and Francis T. Lui (1991) Intergenerational trade, longevity, and economic growth. Journal of Political Economy 99, 1029-1060.
13. Fries, J.F. (1980) Aging, natural death and the compression of morbidity. New England Journal of Medicine 303, 130-135.
14. Gunderson, Morley and W. Craig Riddell (1993) Labor Market Economics. Third Edition. New York: McGraw-Hill.
15. Gustman, Alan L. and Thomas L. Steinmeier (1986) A structural retirement model. Econometrica 54, 555-584.
16. Hammermesh, Daniel S. (1993) Labor Demand. Princeton, NJ: Princeton University Press.
17. Hammermesh, Daniel S. (1985) Expectation, life expectancy, and economic behavior. Quarterly Journal of Economics 100(2), 389-408.
18. Hu, Sheng-Cheng (1979) Social security, the supply of labor, and capital accumulation. American Economic Review 69, 274-283.
19. Hu, Sheng-Cheng (1995) Demographics, productivity growth and the macroeconomic equilibrium. Economic Inquiry 33(4), 592-610.
20. Hurd, Michael D. (1997) The economics of individual aging. In Mark R. Rosenzweig and Oded Stark (eds.), Handbook of Population and Family Economics, pp. 891-966. New York: Elsevier Science.
21. Kahn, James A. (1988) Social security, liquidity, and early retirement. Journal of Public Economics 35, 97-117.
22. Lazear, Edward P. (1986) Retirement from the labor force. In Orley Ashenfelter and Richard Layard (eds.), Handbook of Labor Economics, pp. 305-355. Amsterdam: North-Holland.
23. Lee, Ronald and Jonathan Skinner (1999) Will baby boomers bust the federal budget? Journal of Economic Perspectives 13(1), 117-140.
24. Lumsdaine, Robin L. and Olivia S. Mitchell (1999) New developments in the economic analysis of retirement. In Orley Ashenfelter and David Card (eds.), Handbook of Labor Economics, Vol.3C, pp. 3261-3307. New York: Elsevier Science.
25. Lumsdaine, Robin L., James H. Stock, and David A. Wise (1992) Three models of retirement: Computational complexity versus predictive validity. In David Wise (ed.), Topics in the Economics of Aging, pp. 21-57. Chicago: University of Chicago Press.
26. Sheshinski, Eytan (1978) A model of social security and retirement decisions. Journal of Public Economics 10, 337-360.
27. Stock, James H. and David A. Wise (1990) Pensions, the option value of work and retirement. Econometrica 58, 1151-1180.
28. U.S. Census Bureau (2000, 2001) Statistical Abstract of the United States. Washington, DC: U.S. Government Printing Office.
29. U.S. Bureau of Labor Statistics (2001) Civilian Labor Force Participation Rates by Sex, Age, Race, and Hispanic Origin. Washington, DC: Office of Occupation Statistics and Employment Projections.
30. Wilmoth, J.R., L.J. Deegan, H. Lundstrom, and S. Horiuchi (2000). Increase of maximum life-span in Sweden, 1961-1999. Science 289, 2366-2368.
31. Zhang, Jie and Junsen Zhang (2005) The effect of life expectancy on fertility, saving, schooling and economic growth: Theory and evidence. Scandinavian Journal of Economics 107, 45-66.
32. Zhang, Junsen, Jie Zhang, and Ronald Lee (2001) Mortality decline and long-run economic growth. Journal of Public Economics 80, 485-507.
33. Zhang, Jie, Junsen Zhang, and Ronald Lee (2003) Rising longevity, education, savings, and growth. Journal of Development of Economics 70, 83-101.