Skip to Main content Skip to Navigation
New interface
Journal articles

Optimal Linear Taxation under Endogenous Longevity

Abstract : This paper studies the optimal linear tax-transfer policy in an economy where agents differ in productivity and in genetic background and where longevity depends on health spending and genes. If agents internalize imperfectly the impact of health spending on longevity, the utilitarian optimum can be decentralized with type-specific lump-sum transfers and Pigouvian taxes correcting for agents' myopia and for their misperception of health spending's effects on the economy's resources. The second-best problem is examined under linear taxation instruments. It may be optimal to tax health spending, especially under complementarity of genes and health spending in the production of longevity.
Document type :
Journal articles
Complete list of metadata
Contributor : Caroline Bauer Connect in order to contact the contributor
Submitted on : Tuesday, November 20, 2012 - 9:55:14 AM
Last modification on : Wednesday, November 9, 2022 - 1:42:09 PM

Links full text



Marie-Louise Leroux, Pierre Pestieau, Grégory Ponthière. Optimal Linear Taxation under Endogenous Longevity. Journal of Population Economics, 2011, 24 (1), pp.213-237. ⟨10.1007/s00148-010-0304-1⟩. ⟨halshs-00754569⟩



Record views