29 Pages Posted: 14 Jan 1997
Date Written: September 1996
This paper analyzes the savings and health care impacts of mortality contingent claims, defined here as income measures, such as annuities and life-insurance, under which earned income is contingent on the length of one's life. The postwar increase in mandatory annuity and life-insurance programs, as well as the rapid increase in life-expectancy, motivates a better understanding of the effects that mortality contingent claims have on resources devoted to life-extension. We analyze the incentives that such claims imply for life-extension when resources may affect mortality endogenously and argue that these incentives dramatically alter the standard conclusions obtained when mortality is treated exogenously.
Suggested Citation: Suggested Citation
Philipson, Tomas and Becker, Gary S., Mortality Contingent Claims, Health Care, and Social Insurance (September 1996). NBER Working Paper No. w5760. Available at SSRN: https://ssrn.com/abstract=4554