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life expectancy related to observable factors such as income, gender, and health have large effects on savings, and that …
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The magnitude of the effect that health has on the retirement decision has long been studied. We examine the reverse … relationship, whether or not retirement has a direct impact on later-life health. In order to identify the causal relationship, we … unrelated to the baseline health of the individual, and are significant predictors of retirement. We find that there is no …
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This paper constructs a rich model of saving for retired single people. Our framework allows for bequest motives and heterogeneity in medical expenses and life expectancies. We estimate the model using AHEAD data and the method of simulated moments. The data show that out-of-pocket medical...
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