Health and (other) Asset Holdings
Détails
Etat: Public
Version: de l'auteur⸱e
ID Serval
serval:BIB_6C16E201D2BA
Type
Rapport: document publié par une institution, habituellement élément d'une série.
Sous-type
Working paper: document de travail dans lequel l'auteur présente les résultats de ses travaux de recherche. Les working papers ont pour but de stimuler les discussions scientifiques avec les milieux intéressés et servent de base pour la publication d'articles dans des revues spécialisées.
Collection
Publications
Institution
Titre
Health and (other) Asset Holdings
Détails de l'institution
NCCR (National Centre of Competence in Research), FINRISK (Financial Valuation and Risk Management)
Date de publication
05/2009
Numéro
528
Genre
working paper series
Langue
anglais
Nombre de pages
67
Notes
This research has been carried out within the NCCR FINRISK project on "Macro Risk, Systemic Risks and International Finance"
Résumé
The empirical literature on the asset allocation and medical expenditures of U.S. households consistently shows that risky portfolio shares are increasing in
both wealth and health whereas health investment shares are decreasing in these same variables. Despite this evidence, most of the existing models treat financial
and health-related choices separately. This paper bridges this gap by proposing a tractable framework for the joint determination of optimal consumption, portfolio
and health investments. We solve for the optimal rules in closed form and show that the model can theoretically reproduce the empirical facts. Capitalizing on this
closed-form solution, we perform a structural estimation of the model on HRS data. Our parameter estimates are reasonable and confirm the relevance of all the main characteristics of the model.
both wealth and health whereas health investment shares are decreasing in these same variables. Despite this evidence, most of the existing models treat financial
and health-related choices separately. This paper bridges this gap by proposing a tractable framework for the joint determination of optimal consumption, portfolio
and health investments. We solve for the optimal rules in closed form and show that the model can theoretically reproduce the empirical facts. Capitalizing on this
closed-form solution, we perform a structural estimation of the model on HRS data. Our parameter estimates are reasonable and confirm the relevance of all the main characteristics of the model.
Mots-clé
portfolio, health investment, mortality risk
Site de l'éditeur
Création de la notice
22/02/2011 14:26
Dernière modification de la notice
20/08/2019 14:26
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