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Optimal social insurance and health inequality

Grossmann, Volker ; Strulik, Holger

(Working Papers SES ; 464)

This paper integrates into public economics a biologically founded, stochastic process of individual ageing. The novel approach enables us to investigate the interaction between health and retirement policy in order to quantitatively characterize the optimal joint design of the social insurance system today and in response to future medical progress, and its implications for health inequality....