References of "Pestieau, Pierre"
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See detailFamily altruism and long-term care insurance
Klimaviciute, Justina; Pestieau, Pierre ULiege; Schoenmaeckers, Jérome ULiege

in Geneva Papers on Risk and Insurance: Issues and Practice (2019)

The aim of this paper is to analyse long-term care (LTC) insurance purchase decisions by parents who expect to receive assistance from altruistic children. We first propose a simple theoretical model in ... [more ▼]

The aim of this paper is to analyse long-term care (LTC) insurance purchase decisions by parents who expect to receive assistance from altruistic children. We first propose a simple theoretical model in which we show that the effect of children’s altruism on parents’ insurance decisions is ambiguous and depends on a number of factors: the degree of substitutability between informal and formal care, the degree of parental altruism, and the curvature of the utility functions. We then run an empirical test using data from the U.S., France, Spain, Germany and Israel, and proxy altruism with assistance provided to healthy parents. We find that the effect of children’s altruism is negative in Germany and Israel, but not significant in the United States, France and Spain, [less ▲]

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See detailThe Inherited Inequality: How Demographic Aging and Pension Reforms can Change the Intergenerational Transmission of Wealth
Klimaciute, Justina; Pestieau, Pierre ULiege

in German Economic Review (2019)

The role of inherited wealth in modern economies has increasingly come under scrutiny. This study presents one of the first attempts to shed light on how demographic aging could shape this role. It shows ... [more ▼]

The role of inherited wealth in modern economies has increasingly come under scrutiny. This study presents one of the first attempts to shed light on how demographic aging could shape this role. It shows that, in the absence of retirement annuities, or for a given level of annuitization, both increasing longevity and decreasing fertility should reduce the inherited share of total wealth in a given economy. Thus, aging is not likely to explain a recent surge in this share in some advanced economies. Shrinking retirement annuities, however, could offset and potentially reverse these effects. The paper also shows that individual bequests will be more unequally distributed if aging is driven by a drop in fertility. In comparison, the effect of increasing longevity on their distribution is non-monotonic. [less ▲]

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See detailThe political economy of contributive pensions in developing countries
Pestieau, Pierre ULiege; Leroux, Marie Louise; Maldonado, Dario

in European Journal of Political Economy (2019)

This paper sheds light on the role of public institutions as a way to reduce tax evasion through a close link between payroll taxation and pension bene ts. We use a political economy model in which agents ... [more ▼]

This paper sheds light on the role of public institutions as a way to reduce tax evasion through a close link between payroll taxation and pension bene ts. We use a political economy model in which agents have the possibility to hide part of their earnings in order to avoid taxation and, where the public system is more Teffi cient in providing annuitized pension bene ts than the private sector. We show that in the absence of evasion costs, agents are indi erent to the tax rate level as they can always perfectly adapt compliance so as to face their preferred e ective tax rate. There is unanimity in favour of the maximum tax rate and, the public pension system is found to be partially contributive in order to increase tax compliance and thus the resources collected, which in turn, enable higher redistribution toward the worst-o agents. When evasion costs are introduced, perfect substitutability between compliance and taxation breaks down. At the majority voting equilibrium, individuals at the bottom of the income distribution who are in favor of more redistribution, and those at the top who want to transfer more resources to the old age, form a coalition against middle-income agents, in favour of high tax rates. In addition to the previous tax base argument, the optimal level of the Bismarkian pillar is now chosen so as to account for political support. [less ▲]

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See detailLong-Term Care Insurance with Family Altruism: Theory and Empirics
Klimaviciute, Justina; Pestieau, Pierre ULiege; Schoenmaeckers, Jérome ULiege

in Journal of Risk and Insurance (2019)

This article studies long-term care (LTC) insurance in the presence of family altruism. We first explore whether family solidarity affects the application of Arrow's (1963) deductible theorem, shown to ... [more ▼]

This article studies long-term care (LTC) insurance in the presence of family altruism. We first explore whether family solidarity affects the application of Arrow's (1963) deductible theorem, shown to apply in models without family in earlier work. We find that Arrow's theorem generally holds, but departures from the standard model exist. Our analysis highlights complex interplay between parents' insurance and children's aid, implying that some intuitive conjectures are not always verified. For instance, while one expects deductible to increase with children's altruism, this is unambiguously confirmed only under certain conditions. We then study empirically the relation between LTC insurance and children’s altruism using data from Health and Retirement Study (HRS). [less ▲]

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See detailThe Welfare State in Europe. Economic and Social Perspectives
Pestieau, Pierre ULiege; Lefebvre, Mathieu ULiege

Book published by Oxford 
University Press (2018)

Although in Europe there continues to be a large degree of consensus that it is the responsibility of government to ensure that nobody who is poor, sick, disabled, unemployed or old is left deprived ... [more ▼]

Although in Europe there continues to be a large degree of consensus that it is the responsibility of government to ensure that nobody who is poor, sick, disabled, unemployed or old is left deprived, there are mounting calls to roll back spending on the welfare state. Two main charges are raised: that it fails to achieve some of its main objectives, and that it is responsible for a decline in economic performance. Another charge is that it was conceived in a period very different from the present one and is not anymore adapted to the current realities. In this book, we intend to provide a balanced and informed analysis of these charges as well as some thoughts regarding the prospects of the welfare state in an increasingly integrated world. Written by two economists whose concern is both equity and efficiency, this book gives a set of answers to a number of important questions regarding the current social situation of European countries, the performance of the welfare states and the reforms that should be undertaken. It shows that the overall performance of the European welfare states as regarding its main objectives is satisfactory. There are differences across countries, with the Nordic countries leading the pack, but these differences seem to decrease. The book finally deals with an issue that is left unresolved and calls for some fundamental changes in social policies, namely the social divide that has been on the rise in Europe over the past decades and that hampers social cohesion. [less ▲]

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See detailThe Public Economics Long Term Care, in Martin Guzman, ed., Towards a Just Society: Joseph Stiglitz and 21st Century Economics
Pestieau, Pierre ULiege; Ponthiere, Gregory

in Towards a Just Society: Joseph Stiglitz and 21st Century Economics (2018)

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See detailThe Dubious Case for Annual Wealth Taxation
Pestieau, Pierre ULiege; Broadway, Robin

in CESifo DICE Report (2018), 16

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See detailLong-term care social insurance: How to avoid big losses?
Pestieau, Pierre ULiege; Klimaviciute, Justina

in International Tax and Public Finance (2018), 25

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See detailEducation choices, longevity and optimal policy in a Ben-Porath economy
Pestieau, Pierre ULiege; Nishimura, Yukihiro; Ponthiere, Gregory

in Mathematical Social Sciences (2018), 94

We develop a 3-period overlapping generations (OLG) model where individuals borrow at the young age in order to finance their education. Education does not only increase future wages, but also raises the ... [more ▼]

We develop a 3-period overlapping generations (OLG) model where individuals borrow at the young age in order to finance their education. Education does not only increase future wages, but also raises the duration of life, which, in turn, can affect education, in line with Ben-Porath (1967). We examine the conditions under which the Ben-Porath effect prevails. Although the existence of a positive Ben-Porath effect requires, under exogenous longevity, a change in lifetime hours of work, we find, under endogenous longevity, that a positive Ben-Porath effect arises even when old-age labor is fixed. It is also shown that the Ben-Porath effect may not be robust to allowing for adjustments in production factor prices. On the policy side, we show that the social optimum can be decentralized provided the capital stock is set to the Modified Golden Rule level. Finally, we introduce intracohort heterogeneity in learning ability, and we show that, under asymmetric information, the second-best optimal non-linear tax scheme involves a downward distortion in the education of less able types, which reinforces the longevity gap in comparison with the first-best. [less ▲]

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See detailMeans-Tested Long-Term Care and FamilyTransfers
Pestieau, Pierre ULiege; Cremer, Helmut

in German Economic Review (2018), 19

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See detailProductivity and Welfare Performance in the Public Sector
Lefebvre, Mathieu ULiege; Perelman, Sergio ULiege; Pestieau, Pierre ULiege

in Lovell, Knox C. A.; Sickles, Robin C.; Grifell-Tatjé, Emili (Eds.) The Oxford Handbook of Productivity Analysis (2018)

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See detailFGT Old-Age Poverty Measures and the Mortality Paradox: Theory and Evidence
Lefebvre, Mathieu ULiege; Pestieau, Pierre ULiege; ponthiere, grégory

in Review of Income and Wealth (2018), 64(2), 428-458

Income-differentiated mortality, by reducing the share of poor persons in the population, leads to the “Mortality Paradox”: the worse the survival conditions of the poor are, the lower is the measured ... [more ▼]

Income-differentiated mortality, by reducing the share of poor persons in the population, leads to the “Mortality Paradox”: the worse the survival conditions of the poor are, the lower is the measured poverty. We show that FGT measures (Foster et al., 1984) are, in general, not robust to variations in survival conditions. Then, following Kanbur and Mukherjee (2007), we propose to adjust FGT poverty measures by extending the income profiles of the prematurely dead, and we identify the condition under which so-adjusted FGT measures are robust to mortality changes. Finally, we show, on the basis of data from 2007 on old-age poverty in 11 European economies, that the effect of extending income profiles of the prematurely dead on poverty measurement varies with: (1) the fictitious income assigned to the prematurely dead; (2) the degree of poverty aversion; (3) the shape of the (unadjusted) income distribution; and (4) the strength of the income/mortality relationship. [less ▲]

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See detailLong-term care social insurance: How to avoid big losses?
Klimaviciute, Justina ULiege; Pestieau, Pierre ULiege

in International Tax and Public Finance (2018), 25(1), 99-139

Long-term care (LTC) needs are expected to rapidly increase in the next decades, and at the same time, the main provider of LTC, namely the family, is stalling. This calls for more involvement of the ... [more ▼]

Long-term care (LTC) needs are expected to rapidly increase in the next decades, and at the same time, the main provider of LTC, namely the family, is stalling. This calls for more involvement of the state that today covers <20% of these needs and most often in an inconsistent way. Besides the need to help the dependent poor, there is a mounting concern in the middle class that a number of dependent people are incurring costs that could force them to sell all their assets. In this paper, we study the design of a social insurance program that meets this concern. Following Arrow (Am Econ Rev 53:941–973, 1963), we suggest a policy that is characterized by complete insurance above a deductible amount. [less ▲]

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See detailL'Etat-providence. Défense et illustration
Pestieau, Pierre ULiege; Lefebvre, Mathieu ULiege

Book published by PUF (2017)

L’État-providence n’a jamais été autant décrié qu’aujourd’hui, alors qu’il n’a sans doute jamais été aussi nécessaire. Les critiques qu’il doit essuyer viennent de ceux qui veulent en réduire la voilure ... [more ▼]

L’État-providence n’a jamais été autant décrié qu’aujourd’hui, alors qu’il n’a sans doute jamais été aussi nécessaire. Les critiques qu’il doit essuyer viennent de ceux qui veulent en réduire la voilure comme de ceux qui le trouvent incapable de remplir ses principales missions. Les multiples fractures sociales qui ont conduit une partie de la population à douter des politiques censées la secourir pour finir par basculer dans le vote populiste redonnent toute sa justification à un État-providence plus performant et soucieux de combler le fossé séparant une partie de la population socialement intégrée de celle qui compte les exclus. C’est dans cette perspective que se place cet ouvrage. Il présente d’abord un portrait social des pays européens en mettant l’accent sur la France. Il analyse la performance de leurs États-providence face à des obstacles qui ont pour noms « globalisation » et « individualisme ». Il aborde ensuite les principaux domaines où il peut et doit avoir une action : la santé, l’emploi, la retraite et la famille. Il conclut en proposant un certain nombre de recommandations concrètes. [less ▲]

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See detailSocial insurance for long-term care with deductible and linear contributions
Klimaviciute, Justina ULiege; Pestieau, Pierre ULiege

Scientific conference (2017, April 18)

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See detailLong-term care social insurance. How to avoid big losses?
Klimaviciute, Justina ULiege; Pestieau, Pierre ULiege

Scientific conference (2017, March 09)

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See detailLong-term care social insurance. How to avoid big losses?
Klimaviciute, Justina ULiege; Pestieau, Pierre ULiege

Scientific conference (2017, February 10)

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See detailCaring for dependent parents: Altruism, exchange or family norm?
Klimaviciute, Justina ULiege; Perelman, Sergio ULiege; Pestieau, Pierre ULiege et al

in Journal of Population Economics (2017), 30(3), 835-873

Detailed reference viewed: 45 (12 ULiège)