Health and Wealth in a Life Cycle Model
This paper presents a preliminary model of health investments over the life cycle. Health affects both longevity and provides flow utility. We analyze the interplay between consumption choices and investments in health by solving each household’s dynamic optimization problem to obtain predictions on health investments and consumption choices over the lifecycle. Our preliminary model does a good job of matching the distribution of medical expenses across households in the sample. We illustrate the scope of future model applications by examining the effects of a stylized Medicare program on patterns of wealth and mortality.
Year of publication: |
2010-09
|
---|---|
Authors: | Scholz, John Karl ; Seshadri, Ananth |
Institutions: | Institute for Social Research (ISR), University of Michigan |
Saved in:
freely available
Saved in favorites
Similar items by person
-
The Influence of Public Policy on Health, Wealth and Mortality
Scholz, John Karl, (2011)
-
Health Insurance and Retirement Decisions
Scholz, John Karl, (2013)
-
The Assets and Liabilities of Cohorts: The Antecedents of Retirement Security
Collins, J. Michael, (2013)
- More ...