Closing down the shop: Optimal health and wealth dynamics near the end of life

Détails

ID Serval
serval:BIB_4612AC09703E
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
Closing down the shop: Optimal health and wealth dynamics near the end of life
Périodique
Health Economics
Auteur(s)
Hugonnier Julien, Pelgrin Florian, St-Amour Pascal
ISSN
1057-9230
1099-1050
Statut éditorial
Publié
Date de publication
02/2020
Peer-reviewed
Oui
Volume
29
Numéro
2
Pages
138-153
Langue
anglais
Résumé
Near the end of life, health declines, mortality risk increases, and curative care is replaced by uninsured long-term care, accelerating the fall in wealth. Whereas standard explanations emphasize inevitable aging processes, we propose a com- plementary closing down the shop justification where agents' decisions affect their health and the timing of death. Despite preferring to live, individuals opti- mally deplete their health and wealth towards levels associated with high death risk and gradual indifference between life and death. Reinstating exogenous aging processes reinforces the relevance of closing down. Using Health and Retirement Study–Consumption and Activities Mail Survey data for elders, a structural estimation of the closed-form decisions identifies, tests, and confirms the relevance of closing down.
Mots-clé
Health Policy
Pubmed
Web of science
Création de la notice
09/06/2020 11:20
Dernière modification de la notice
10/06/2020 6:20
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