Discussion Paper

No. 2016-39 | September 01, 2016
Aging, Private Health Expenditures and Environment Quality


This paper presents a simple two-period overlapping generation’s model with uncertain lifetimes that contains environmental and health issues. It investigates an intergenerational conflict between old and young generations as regards two defensive expenditures, offsetting the influence of a worsening environment, represented here by health care and environmental investment. Workers support environmental maintenance while retirees prefer investing in healthcare. The author shows that an increasing support for private health expenditures in an aging economy leads to a higher level of capital accumulation and leads also to a higher level of environmental quality only if the maintenance efforts are larger than consumption externalities.

JEL Classification:

D91, J11, Q20


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Cite As

Fatma Safi (2016). Aging, Private Health Expenditures and Environment Quality. Economics Discussion Papers, No 2016-39, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2016-39

Comments and Questions

Anonymous - Referee Report
November 01, 2016 - 08:45

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Fatma Safi - Reply to Referee Report
November 23, 2016 - 13:39

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Anonymous - Comments on Reply
December 13, 2016 - 10:16

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