A Structural Analysis of the Health Expenditures and Portfolio Choices of Retired Agents
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State: Public
Version: author
Serval ID
serval:BIB_5E976C81D5D2
Type
Report: a report published by a school or other institution, usually numbered within a series.
Publication sub-type
Working paper: Working papers contain results presented by the author. Working papers aim to stimulate discussions between scientists with interested parties, they can also be the basis to publish articles in specialized journals
Collection
Publications
Institution
Title
A Structural Analysis of the Health Expenditures and Portfolio Choices of Retired Agents
Institution details
Swiss Finance Institute
Issued date
06/2010
Number
10-29
Genre
Research Paper
Language
english
Abstract
Richer and healthier agents tend to hold riskier portfolios and spend proportionally less on health expenditures. Potential explanations include health and wealth effects on preferences, expected longevity or disposable total wealth. Using HRS data, we perform a structural estimation of a dynamic model of consumption, portfolio and health expenditure choices with recursive utility, as well as health-dependent income and mortality risk. Our estimates of the deep parameters highlight the importance of health capital, mortality risk control, convex health and mortality adjustment costs and binding liquidity constraints to rationalize the stylized facts. They also provide new perspectives on expected longevity and on the values of life and health.
Keywords
asset allocation, expected lifetime, health production function, mortality risk, recursive utility, value of health, value of life
Publisher's website
Create date
22/02/2011 14:59
Last modification date
20/08/2019 14:16