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Subjective Health Expectations

  • Kim P. Huynh

    ()

    (Department of Economics, Indiana University - Bloomington)

  • Juergen Jung

    ()

    (Department of Economics, Towson University)

Subjective health expectations are derived using data from the Health and Retirement Study (HRS). We first use a Bayesian updating mechanism to correct for focal point responses and reporting errors of the original health expectations variable. We then test the quality of the health expectations measure and describe its correlation with various health indicators and other individual characteristics. Our results indicate that subjective health expectations do contain additional information that is not incorporated in subjective mortality expectations and that the rational expectations assumption cannot be rejected for subjective health expectations. Finally, the data suggest that individuals younger than 70 years of age seem to be more pessimistic about their health than individuals in their 70's.

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File URL: http://www.towson.edu/cbe/economics/workingpapers/2010-08.pdf
File Function: First version, 2009
Download Restriction: no

Paper provided by Towson University, Department of Economics in its series Working Papers with number 2010-08.

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Length: 26 pages
Date of creation: Mar 2010
Date of revision: May 2014
Handle: RePEc:tow:wpaper:2010-08
Contact details of provider: Postal: Towson, Maryland 21252-0001
Phone: 410-704-2959
Fax: 410-704-3424
Web page: http://www.towson.edu/cbe/economics/

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