The Medicare trust funds face huge prospective deficits by the end of this decade.This paper discusses trends in six areas that bear on the Medicare problem: the number of the elderly, their health status, use of medical care, labor force participation, income, and living arrangements. Among the...

Numerous studies by economists during the past decade have revealed a large, statistically significant correlation between health and years of schooling after controlling for differences in income and other variables. Cigarette smoking is a likely intervening variable because of the strong...