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Aging humans adapt to their worsening state of health and old people are usually happier than estimated by young individuals. In this paper we investigate how adaptation to a deteriorating state of health affects health spending, life expectancy, and the value of life. We set up a a life cycle...
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growth. We identify the moral-hazard effect in healthcare investments when annuity rates are conditioned on average mortality … equilibrium effects and macroeconomic repercussions associated with this moral-hazard effect. In a numerical simulation of our …
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mortality. The economy consists of two sectors: final goods production and a health care sector, selling medical services to … individuals. Individuals demand health care with a view to lowering mortality over their life-cycle. We derive the age …
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