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Cognitive Decline and Dynamic Selection

Author

Listed:
  • Darden, M.E.;

Abstract

The age profile of cognitive skill decline, and the investments that shape it, are potentially confounded by non-random mortality. I frame this dynamic selection problem in the context of health capital (Grossman, 1972), and I estimate a general model of health investment, health, and mortality. Consistent with theory, I find substantially wider gaps in cognitive health by education, race, and smoking behavior relative to cross-sectional comparisons, in some cases by 100%. Furthermore, these gaps grow in age, which suggests that theories of cognitive decline need to accommodate differential rates of change in cognitive health.

Suggested Citation

  • Darden, M.E.;, 2023. "Cognitive Decline and Dynamic Selection," Health, Econometrics and Data Group (HEDG) Working Papers 23/09, HEDG, c/o Department of Economics, University of York.
    • Handle: RePEc:yor:hectdg:23/09
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    References listed on IDEAS

    as
    1. Jeffrey E. Zabel, 1998. "An Analysis of Attrition in the Panel Study of Income Dynamics and the Survey of Income and Program Participation with an Application to a Model of Labor Market Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 479-506.
    2. Jeffrey M. Wooldridge, 2002. "Inverse probability weighted M-estimators for sample selection, attrition, and stratification," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 117-139, August.
    3. James P. Ziliak & Thomas J. Kniesner, 1998. "The Importance of Sample Attrition in Life Cycle Labor Supply Estimation," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 507-530.
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    Keywords

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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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