In a model where consumers have quasi-hyperbolic preferences, we compare immediate subsidies paid for health …-conscious consumption and future subsidies rewarding good health outcome. We characterize the subsidy rates which implement the unbiased …

Based on a dynamic life cycle model, this study analyzes health-related risks of consumption and old-age poverty. The … model allows for health effects on employment risks, on productivity, on longevity, the correlation between health risks … employees and an extended Expectation-Maximization algorithm. Simulations suggest that health shocks induce average losses in …

Based on a dynamic life cycle model, this study analyzes health-related risks of consumption and old-age poverty. The … model allows for health effects on employment risks, on productivity, on longevity, the correlation between health risks … employees and an extended Expectation-Maximization algorithm. Simulations suggest that health shocks induce average losses in …

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 … adaptation generally increases the value of life (by about 2 to 5 percent), its impact on health behavior and longevity depends …

biologically-founded life-cycle model of health deficit accumulation and endogenous longevity. We calibrate the model with U …