Optimal aging with uncertain death
AbstractThis paper extends the theory of optimal aging and death (Dalgaard and Strulik, 2010, 2013) towards uncertain death. Specifically, it is assumed that at any age the probability to survive depends on the number of health deficits accumulated. At the expense of less analytical tractability the model provides a formal description of aging as conceptualized in modern biology, i.e. as an inherently stochastic process according to which the timing of death of a person is not determined by his or her age but by the number of accumulated health deficits. The stochastic model basically confirms the earlier deterministic model with respect to its predictions on the association between income and life-expectancy across countries. --
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Bibliographic InfoPaper provided by University of Goettingen, Department of Economics in its series Center for European, Governance and Economic Development Research Discussion Papers with number 160.
Date of creation: 2013
Date of revision:
Aging; Longevity; Health; Savings; Preston Curve;
Other versions of this item:
- Strulik, Holger, 2011. "Optimal Aging with Uncertain Death," Diskussionspapiere der Wirtschaftswissenschaftlichen FakultÃ¤t der Leibniz UniversitÃ¤t Hannover dp-488, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
- I12 - Health, Education, and Welfare - - Health - - - Health Production
This paper has been announced in the following NEP Reports:
- NEP-AGE-2013-07-05 (Economics of Ageing)
- NEP-ALL-2013-07-05 (All new papers)
- NEP-DEM-2013-07-05 (Demographic Economics)
- NEP-HEA-2013-07-05 (Health Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Holger Strulik & Sebastian Vollmer, 2013.
"Long-run trends of human aging and longevity,"
Journal of Population Economics,
Springer, vol. 26(4), pages 1303-1323, October.
- Heijdra, Ben J. & Romp, Ward E., 2005.
"A Life-Cycle Overlapping-Generations Model of the Small Open Economy,"
05C04, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Ben J. Heijdra & Ward E. Romp, 2008. "A life-cycle overlapping-generations model of the small open economy," Oxford Economic Papers, Oxford University Press, vol. 60(1), pages 88-121, January.
- Carl-Johan Dalgaard & Holger Strulik, 2010. "Optimal Aging and Death," PGDA Working Papers 5810, Program on the Global Demography of Aging.
- Eytan Sheshinski, 2007. "The Economic Theory of Annuities," Economics Books, Princeton University Press, edition 1, volume 1, number 8536.
- Carl-Johan Dalgaard & Holger Strulik, 2012. "The Genesis of the Golden Age - Accounting for the Rise in Health and Leisure," Discussion Papers 12-10, University of Copenhagen. Department of Economics.
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