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The Evolution of Health over the Life Cycle

Author

Listed:
  • Roozbei Hosseini

    (Georgia State University)

  • Karen Kopecky

    (Federal Reserve Bank of Atlanta)

  • Kai Zhao

    (University of Connecticut)

Abstract

We construct a unified objective measure of health status: the frailty index, defined as the cumulative sum of all adverse health indicators observed for an individual. Using this index, we document four stylized facts on health dynamics over the life cycle and show that they are robust to other ways of constructing the index. We also compare the frailty index with self-reported health status and find significant differences in their dynamics and ability to predict health-related outcomes. Finally, we propose and estimate a stochastic process for frailty dynamics over the life cycle accounting for mortality bias. Our frailty measure and dynamic process can be used to study the evolution of health over the life cycle and its economic implications. (Copyright: Elsevier)

Suggested Citation

  • Roozbei Hosseini & Karen Kopecky & Kai Zhao, 2022. "The Evolution of Health over the Life Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 45, pages 237-263, July.
    • Handle: RePEc:red:issued:19-252
    DOI: 10.1016/j.red.2021.07.001
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    1. Holger Strulik & Volker Grossmann, 2022. "Life Cycle Economics with Infectious and Chronic Diseases," CESifo Working Paper Series 10141, CESifo.
    2. Svetlana Pashchenko & Ponpoje (Poe) Porapakkarm & Mariacristina De Nardi, 2017. "The Lifetime Costs of Bad Health," 2017 Meeting Papers 533, Society for Economic Dynamics.
    3. Scott, Andrew J., 2023. "The economics of longevity – An introduction," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).
    4. Umesh Ghimire, 2020. "The Impact of Health on Wealth: Empirical Evidence," Working papers 2020-19, University of Connecticut, Department of Economics.
    5. Plassard, Romain, 2022. "Diagnosing unemployment: the dual project of the ENSAE's band," MPRA Paper 113584, University Library of Munich, Germany.
    6. Ana Lucia Abeliansky & Holger Strulik, 2023. "Health and aging before and after retirement," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(4), pages 2825-2855, October.
    7. Chiara Dal Bianco, 2023. "Disability Insurance and the Effects of Return-to-work Policies," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 49, pages 351-373, July.
    8. Kelly, Mark & Kuhn, Michael, 2022. "Congestion in a public health service: A macro approach," Journal of Macroeconomics, Elsevier, vol. 74(C).
    9. Curtis, Chadwick & Garín, Julio & Lester, Robert, 2022. "Working, consuming, and dying: Quantifying the diversity in the american experience," Journal of Economic Dynamics and Control, Elsevier, vol. 138(C).
    10. White, Matthew N., 2023. "Self-reported health status and latent health dynamics," Journal of Health Economics, Elsevier, vol. 88(C).
    11. Dragone, Davide & Strulik, Holger, 2020. "Negligible senescence: An economic life cycle model for the future," Journal of Economic Behavior & Organization, Elsevier, vol. 171(C), pages 264-285.
    12. Schünemann, Johannes & Strulik, Holger & Trimborn, Timo, 2022. "Optimal demand for medical and long-term care," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    13. Abeliansky, Ana Lucia & Erel, Devin & Strulik, Holger, 2019. "Aging in the USA: Similarities and disparities across time and space," University of Göttingen Working Papers in Economics 384, University of Goettingen, Department of Economics.
    14. Hosoya, Kei, 2023. "Impact of infectious disease pandemics on individual lifetime consumption: An endogenous time preference approach," Journal of Macroeconomics, Elsevier, vol. 76(C).
    15. Tianxu Chen, 2019. "Can Health Savings Account Reduce Health Spending?: Evidence from China," Working papers 2019-08, University of Connecticut, Department of Economics.
    16. FUKAI Taiyo & ICHIMURA Hidehiko & KITAO Sagiri & MIKOSHIBA Minamo, 2021. "Medical Expenditures over the Life Cycle: Persistent Risks and Insurance," Discussion papers 21073, Research Institute of Economy, Trade and Industry (RIETI).
    17. Otsu, Yuki & Yuen, C.Y. Kelvin, 2022. "Health, crime, and the labor market: Theory and policy analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 144(C).
    18. Strulik, Holger, 2021. "Intertemporal choice with health-dependent discounting," Mathematical Social Sciences, Elsevier, vol. 111(C), pages 19-25.

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    More about this item

    Keywords

    Health; Frailty index; Self-reported health status; Mortality; Simulated method of moments; Selection bias;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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