No Pain, No Strain: Impact of Health on the Financial Security of Older Americans

Angela Lyons () and Hyungsoo Kim

No 2007-WP-12, NFI Working Papers from Indiana State University, Scott College of Business, Networks Financial Institute

Abstract: This study uses data from the 2002 and 2004 Health and Retirement Study to investigate the impact that health problems have on the financial strain of older Americans. Two-stage probit models are estimated for a series of financial ratio guidelines that take into account household solvency, liquidity, and investment asset accumulation. We test our models using a subjective measure of self-reported health status and two objective measures of health that control for the severity of specific health conditions. The results show that health problems significantly increase the likelihood of financial strain for older individuals, and the magnitudes of the effects vary by the type of financial strain and how health status is defined. Those most likely to experience some type of financial strain are those with severe chronic conditions. The results provide insight into the future financial security of older Americans and have important implications for health policy and research.

Pages: 39 pages
Date: 2007-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.indstate.edu/business/sites/business.in ... -WP-12_Lyons-Kim.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.indstate.edu/business/sites/business.indstate.edu/files/Docs/2007-WP-12_Lyons-Kim.pdf [301 Moved Permanently]--> https://indianastate.edu/business/sites/business.indstate.edu/files/Docs/2007-WP-12_Lyons-Kim.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nfi:nfiwps:2007-wp-12

Access Statistics for this paper

More papers in NFI Working Papers from Indiana State University, Scott College of Business, Networks Financial Institute Contact information at EDIRC.
Bibliographic data for series maintained by Ray Thomas ().