The Economics of an Aging Society

by Clark, Robert L.; Burkhauser, Richard V.; Moon, Marilyn; Quinn, Joseph F.; Smeeding, Timothy M.

• ISBN13: 9780631226154
• ISBN10: 063122615X
• Edition: 1st
• Format: Hardcover
• Copyright: 2004-02-13
• Publisher: Wiley-Blackwell

Summary

Written by leading thinkers in the field, this text provides an in-depth analysis of the economic and policy issues associated with the aging of individuals and populations. With a strong policy focus based on demographic and economic study, this book focuses on "who gets what" from current and proposed government programs that impact on older persons, and how these affect individual behaviour. It does so in a straightforward manner that is accessible to readers with a range of mathematical backgrounds. The discussion concentrates on: bull; bull;the effects of aging populations on the United States and other nations; bull;the economic wellbeing of the elderly, highlighting women and minorities; bull;public and private programs providing income for the elderly; bull;Medicare, Medicaid, and private health insurance; bull;Social Security and Medicare reform options; bull;employer-based retirement programs and pensions; bull;retirement patterns and factors influencing retirement decisions. The authors draw from the experiences of other countries in evaluating the US experience and options. Additionally, each chapter engages the reader through practical examples and stimulates further investigation by providing practice questions with relevant website addresses.

Author Biography

Robert L. Clark is Professor of Economics at North Carolina State University.

Richard V. Burkhauser is the Sarah Gibson Blanding Professor of Policy Analysis and Chair of the Department of Policy Analysis and Management in the College of Human Ecology, Cornell University.

Marilyn Moon is Vice President and Director of Health at the American Institutes for Research.

Joseph F. Quinn is Dean of the College of Arts and Sciences at Boston College.Timothy M. Smeeding is Maxwell Professor of Public Policy and Professor of Economics and Public Policy at Syracuse University.

Table of Contents

List of figures	ix
List of tables	xi
Acknowledgments	xiii
1 INTRODUCTION	1	(8)
Why Write a Book on the Economics of Aging?	1	(2)
How This Book Can Help You	3	(2)
The Range of Issues Covered	5	(4)
PART I POPULATION AGING AND THE INCOME OF THE ELDERLY	9	(76)
2 THE GRAYING OF AMERICA AND THE WORLD	11	(23)
Introduction	12	(1)
Population Mathematics	13	(5)
Improving Life Expectancy in America	18	(11)
International Aging	29	(1)
Population Aging: Good News or Bad?	30	(1)
Discussion Questions	31	(1)
References	32	(2)
3 THE ECONOMIC WELL-BEING OF OLDER AMERICANS	34	(47)
Introduction	36	(1)
The Measurement of Economic Well-Being	37	(1)
Sources and Shares of Income of the Elderly	38	(6)
Income of the Elderly	44	(5)
Poverty among the Elderly	49	(2)
Diversity among the Elderly	51	(3)
The Sensitivity of Income and Poverty Measures to Alternative Measurement Assumptions	54	(3)
The Sensitivity of Policy Outcomes to Poverty Measurement Assumptions	57	(6)
Inclusion of In-Kind Benefits	63	(5)
A Policy Comparison: How Older People Fared During the Growth Years of the 1980's	68	(3)
Wealth among the Elderly	71	(7)
A Population at Risk?	78	(2)
Conclusion	80	(1)
Discussion Questions	81	(1)
Notes	82	(1)
References	83	(2)
PART II RETIREMENT PLANNING AND POLICIES	85	(82)
4 ECONOMICS OF RETIREMENT AND OLD AGE	81	(30)
Introduction	89	(1)
Basic Economics and Retirement Savings Economics	89	(4)
Economic Models	93	(5)
Life Cycle Model	98	(6)
Role of the Public Sector	104	(4)
Program Interactions, Societal Aging, and the Limits of Public Versus Private Responsibility	108	(1)
Discussion Questions	109	(1)
Notes	109	(1)
References	110	(1)
5 WORK AND RETIREMENT	111	(24)
Introduction	112	(1)
Determinants of Retirement	112	(5)
Trends in Labor Force Participation among Older Americans	117	(8)
Why the Change in Retirement Patterns?	125	(3)
How do Older Americans Leave the Labor Force?	128	(1)
International Patterns of Retirement	129	(3)
Conclusion	132	(1)
Discussion Questions	132	(1)
Note	133	(1)
References	133	(2)
6 RETIREMENT POLICIES AND PENSION PLANS	135	(34)
Introduction	137	(1)
Pension Economics	137	(1)
Types of Pension Plans	138	(7)
Benefit Accruals	145	(3)
Pensions and Worker Behavior: Empirical Evidence	148	(1)
Development of Pensions in the United States	148	(3)
Changing Universe of Pension Plans	151	(3)
Government Regulation of Private Pensions	154	(2)
Other Retirement Policies	156	(4)
Discussion Questions	160	(1)
Notes	160	(4)
References	164	(3)
PART III SOCIAL SECURITY PROGRAMS AND REFORMS	167	(102)
7 SOCIAL SECURITY BENEFITS AND PROGRAM OBJECTIVES: AN INDIVIDUAL PERSPECTIVE	169	(34)
Introduction	171	(1)
How Old-Age, Survivors, and Disability Insurance Works	171	(7)
What are the Policy Objectives of the OASDI Tax and Benefit Structure?	178	(3)
Trends in Social Welfare Spending in the United States	181	(2)
Disentangling the Insurance and Redistributive Components of Social Security	183	(7)
Evaluating Social Security Policies	190	(9)
Conclusion	199	(1)
Discussion Questions	199	(2)
Notes	201	(1)
References	201	(2)
8 SOCIAL SECURITY FINANCING AND REFORM ISSUES	203	(28)
Introduction	205	(1)
Fully Funded vs. Pay-As-You-Go Systems	205	(3)
Social Security Finances	208	(3)
Proposed Solutions to the Long-Term Financing of OASI	211	(4)
Some Specific Reform Proposals	215	(8)
Criteria for Social Security Reform	223	(5)
Conclusion	228	(3)
Discussion Questions	231	(1)
Notes	231	(4)
References	235
9 DISABILITY POLICY	231	(38)
Introduction	239	(1)
How Social Security Disability Insurance (SSDI) Works	240	(4)
A Brief History of SSDI Policy	244	(3)
How Supplemental Security Income (SSI) Works	247	(2)
A Brief History of SSI Policy	249	(2)
Program Participation and Work Incentives of SSI and SSDI	251	(6)
Trends in Employment Rates and Benefit Caseloads for People with Disabilities	257	(3)
Disability Policy Trade-Offs	260	(2)
Conclusion	262	(3)
Discussion Questions	265	(1)
Notes	266	(1)
References	267	(2)
PART IV HEALTH AND LONG-TERM CARE FOR OLDER PERSONS	269	(75)
10 THE FINANCING AND DELIVERY OF ACUTE HEALTH CARE SERVICES	211	(105)
Introduction	273	(1)
Special Concerns Regarding Health Care and the Elderly	273	(7)
The Basics of Medicare	280	(4)
Supplemental Coverage for Acute Care	284	(4)
Problems with and Strengths of the Medicare System	288	(12)
Reform Options to Improve Beneficiary Protections	300	(1)
Reform Options to Reduce Medicare Costs	301	(7)
Prospects for the Future	308	(1)
Conclusion	308	(1)
Discussion Questions	309	(1)
Notes	309	(1)
References	310	(6)
11 ADDITIONAL HEALTH ISSUES: LONG-TERM CARE	316	(28)
Introduction	318	(1)
Defining Long-term Care	319	(4)
The Current Long-term Care "System"	323	(6)
Problems with the Current System	329	(5)
Approaches to Improve Coverage and Meet Other Needs	334	(6)
Conclusion	340	(1)
Discussion Questions	341	(1)
Notes	341	(1)
References	342	(2)
Index	344