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The Short-Term Mortality Consequences of Income Receipt

  • William N. Evans
  • Timothy J. Moore

Many studies find that households increase their consumption after the receipt of expected income payments, a result inconsistent with the life-cycle/permanent income hypothesis. Consumption can increase adverse health events, such as traffic accidents, heart attacks and strokes. In this paper, we examine the short-term mortality consequences of income receipt. We find that mortality increases following the arrival of monthly Social Security payments, regular wage payments for military personnel, the 2001 tax rebates, and Alaska Permanent Fund dividend payments. The increase in short-run mortality is large, potentially eliminating some of the protective benefits of additional income.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15311.

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Date of creation: Sep 2009
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Publication status: published as Evans, William N. & Moore, Timothy J., 2011. "The short-term mortality consequences of income receipt," Journal of Public Economics, Elsevier, vol. 95(11), pages 1410-1424.
Handle: RePEc:nbr:nberwo:15311
Note: HC HE
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