nep-age New Economics Papers
on Economics of Ageing
Issue of 2022‒03‒28
four papers chosen by
Claudia Villosio
LABORatorio R. Revelli
  1. Planning and saving for retirement By Sulka, Tomasz
  2. Age-adjusted COVID-19 Mortality Rates by Demographic Groups By Ruben Hernandez-Murillo
  3. Financializing nursing homes? The uneven development of health care REITs in France, the United Kingdom and Japan By Natacha Aveline-Dubach
  4. El Mecanismo de Equidad Intergeneracional: una disposición poco equitativa, insuficiente y confusa By Ángel de la Fuente; Miguel Ángel García Díaz; Alfonso R. Sánchez
  1. By: Sulka, Tomasz
    Abstract: Planning for retirement and subsequent execution of the plan are difficult, but essential for financial security in old age. To formally analyse the interplay between planning and self-control, I introduce cognitive costs of formulating a plan into the dual-self model of impulse control. The resulting model can generate rational inaction in pension choices, with the agent's self-control and level of income playing a role of inputs into the decision whether or not to undertake costly planning. Furthermore, when they do plan, agents characterised by poor self-control save over shorter horizons and accumulate lower pension wealth. The possibility of rational inaction can explain other robustly observed behaviours, such as disproportionately low savings of individuals on low incomes and non-fungibility between public and private pension wealth. The model is applied to study welfare and savings implications of automatic enrolment into private pensions. The default option effect on plan participation arises due to the fact that counterfactual non-savers have the lowest threshold for accepting the default scheme. Nevertheless, the impact of automatic enrolment on total savings is ambiguous in general, because in addition to the counterfactual non-savers, the default may anchor contributions of a counterfactual active saver to a low default contribution rate. Consequently, although raising the default contribution rate itself has an ambiguous impact on aggregate savings, it always reduces the dispersion in pension wealth accumulation.
    Keywords: Planning,Self-Control,Cognitive Costs,Pensions,Automatic Enrolment
    JEL: D14 D15 D91 E21 E71 H55 J32
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:zbw:dicedp:384&r=
  2. By: Ruben Hernandez-Murillo
    Abstract: A noteworthy aspect of the SARS-CoV-2 (COVID-19) pandemic is the disproportionate effect of the virus on people of different age groups. The elderly have a higher risk of mortality than working-age adults, and they also face a higher mortality risk than children (CDC, 2020). Figure 1 shows the monthly age-specific crude mortality rates (CMRs) by age group for the United States during 2020 and 2021. One can see that the mortality rates of children (0 to 17 years) and young adults (18 to 29 years) are essentially flat, with 1 death per million children and at most 14 deaths per million young adults. The mortality rate of intermediate adults (30 to 49 years) is somewhat higher, as is the mortality rate of older adults (50 to 64 years). However, the figure illustrates the striking disparity between the mortality rate of elderly adults (65 years or older) and the rest of the population, including children: The mortality rate of the elderly peaked at 1,577 deaths per million in January 2021. The mortality rate for the overall population is the population-weighted average of the rates across all five age groups.
    Keywords: COVID-19
    Date: 2022–03–23
    URL: http://d.repec.org/n?u=RePEc:fip:c00003:93866&r=
  3. By: Natacha Aveline-Dubach (GC (UMR_8504) - Géographie-cités - UP1 - Université Paris 1 Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - UP - Université de Paris)
    Abstract: Population aging has led to the establishment of Healthcare REITs (HC-REITs) to boost the supply of nursing homes, but these initiatives have met with contrasting success in different countries. This paper bridges two strands of research on financialization, social welfare and the built environment, to explain the uneven geography of HC-REIT development in France, the U.K. and Japan. It argues that nation-specific processes of nursing home securitization are shaped by the interrelationships between three crucial factors: (i) the regime of retirement income, (ii) public policies dedicated to long-term institutional care, and (iii) the power relations between the REITs and care providers themselves. Drawing on discussions with experts in these sectors, the paper demonstrates that liberal welfare states such as the U.K. have an especially attractive profile for HC-REIT investors due to the advanced state of financialized pension reforms, significant state disengagement in the provision of long-term care, and REITfriendly regulations that facilitate investment operations and leases. On the one hand, these tendencies are driving financial investors to satisfy a growing demand for retirement savings in niche markets such as HC-REITs. On the other hand, value extraction is being increasingly sought through the capture of care-dependent residents' home equity. By linking social benefit provisioning to later-life housing accommodation, this article casts important light on current debates on the political economy of real estate financialization, while also emphasizing the need for continued state support for long-term institutional care.
    Abstract: Le vieillissement de la population a conduit à la création de foncières de santé cotées ("Healthcare REITs » ou HC-REITs) pour accroître l'offre de maisons de retraite médicalisées, mais ces initiatives ont connu un inégal succès selon les pays. Cet article articule deux courants indépendants de recherche sur la financiarisation, portant sur la protection sociale et sur le cadre bâti, pour analyser les géographies inégales des HC-REIT dans trois pays: en France, au Royaume-Uni et au Japon.Il est fait l'hypothèse que le processus de titrisation des maisons de retraite médicalisées est façonné dans chaque contexte national par la combinaison de trois facteurs: 1) le régime des retraites; 2) les politiques publiques relatives aux soins de longue durée en institution; 3) les relations de pouvoir entre les HC-REITs et les prestataires de soins. S'appuyant sur des enquêtes auprès d'une variété d'acteurs, l'article démontre que les régimes de protection sociales dits "libéraux" comme au Royaume-Uni présentent un profil particulièrement attrayant pour les investisseurs de HC-REITs en raison de l'état avancé de la financiarisation des retraites, du désengagement significatif de l'État dans la fourniture de soins de longue durée et des réglementations favorables aux REITs pour les opérations d'investissement et la contractualisation des baux. Ces évolutions encouragent le placement de l'épargne, notamment liées aux retraites via les fonds de pension, dans les marchés de niche tels que les HC-REITs. Il s'ensuit une captation croissante des patrimoines immobiliers des personnes âgées dépendantes par ces structures d'investissement financier. En établissant un lien entre les régimes de protection sociale et les conditions d'hébergement des personnes âgées, cet article apporte un éclairage aux débats actuels sur l'économie politique de la financiarisation de l'immobilier, tout en soulignant la nécessité d'un soutien public continu aux soins de longue durée en institution.
    Keywords: real estate,financialization,asset-based welfare,nursing homes,long-term care,Nursing homes,REIT,Real estate,Financialization,Long-term care,Asset-based welfare,Protection sociale basée sur les actifs,Soins longue durée,Financiarisation,Immobilier,EHPAD,Maisons de retraite
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-03549729&r=
  4. By: Ángel de la Fuente; Miguel Ángel García Díaz; Alfonso R. Sánchez
    Abstract: La presente nota contiene un análisis crítico del llamado mecanismo de equidad intergeneracional incluido en la reciente ley de reforma del sistema público de pensiones. Aunque se trata de la primera medida de la reforma en curso que ayudará a mitigar los problemas de sostenibilidad del sistema (a través de la subida de las cotizaciones), se argumenta que resulta claramente insuficiente para restaurar su equilibrio, no contribuye precisamente a mejorar su equidad intergeneracional y presenta serios problemas de diseño que parecen ser fruto de una redacción apresurada y poco meditada.
    Date: 2022–01
    URL: http://d.repec.org/n?u=RePEc:fda:fdafen:2022-02&r=
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