Optimal Aging and Death: Understanding the Preston Curve
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Optimal Aging and Death : Understanding the Preston Curve. / Dalgaard, Carl-Johan; Strulik, Holger.
Department of Economics, University of Copenhagen, 2011.Research output: Working paper › Research
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TY - UNPB
T1 - Optimal Aging and Death
T2 - Understanding the Preston Curve
AU - Dalgaard, Carl-Johan
AU - Strulik, Holger
N1 - JEL classification: D91, J17, J26, I12
PY - 2011
Y1 - 2011
N2 - The present study examines whether the Preston curve reflects a causal impact of income on longevity or, for example, factors correlated with both income and life expectancy. In order to understand the Preston curve better, we develop a model of optimal intertemporal consumption in which the representative consumer is subject to physiological aging. In modeling aging we draw on recent research in the fields of biology and medicine. The speed of the aging process, and thus the time of death, are endogenously determined by optimal health investments. We calibrate the model to US data and proceed to show that the model accounts for nearly 80% of the cross-country differences in life expectancy that the Preston curve captures.
AB - The present study examines whether the Preston curve reflects a causal impact of income on longevity or, for example, factors correlated with both income and life expectancy. In order to understand the Preston curve better, we develop a model of optimal intertemporal consumption in which the representative consumer is subject to physiological aging. In modeling aging we draw on recent research in the fields of biology and medicine. The speed of the aging process, and thus the time of death, are endogenously determined by optimal health investments. We calibrate the model to US data and proceed to show that the model accounts for nearly 80% of the cross-country differences in life expectancy that the Preston curve captures.
KW - Faculty of Social Sciences
KW - longevity
KW - health investments
KW - savings
M3 - Working paper
BT - Optimal Aging and Death
PB - Department of Economics, University of Copenhagen
ER -
ID: 32959407