Health Investment over the Life-Cycle
We study quantitatively what drives the rise in medical expenditures over the life-cycle. Two motives are considered. First, health delivers a flow of utility each period. Second, better health enables people to allocate more time to productive or pleasurable activities. We calibrate a model of endogenous health accumulation to match key economic targets and gauge its performance by comparing consumption, labor supply, and medical expenditure profiles from the model to their counterparts in the data. The precipitous rise in medical expenditures that occurs late in life is primarily driven by the value of health as a consumption good, not an investment good. This conclusion is robust to different specifications of health investment motives and preferences.
|Date of creation:||30 Nov 2010|
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- Konan, Denise Eby & Maskus, Keith E., 2000.
"Joint trade liberalization and tax reform in a small open economy: the case of Egypt,"
Journal of Development Economics,
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- Bonham, Carl & Gangnes, Byron & Zhou, Ting, 2009. "Modeling tourism: A fully identified VECM approach," International Journal of Forecasting, Elsevier, vol. 25(3), pages 531-549, July.
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