EconPapers    
Economics at your fingertips  
 

The Health Hump

Holger Strulik ()

JODE - Journal of Demographic Economics, 2017, vol. 83, issue 2, 245-258

Abstract: In this paper, I suggest a novel explanation for a hump-shaped age-consumption profile, based on human aging. The model integrates health in the utility function and utilizes recent estimates of the effects of health on the marginal utility of consumption. The parsimonious model has a closed-form solution for the age of peak consumption and the consumption level at that age relative to initial consumption. A calibration of the model with data from gerontology produces an empirically plausible hump in consumption.

Keywords: Life-cycle consumption; Health; Aging (search for similar items in EconPapers)
JEL-codes: D91 E21 I10 (search for similar items in EconPapers)
Date: 2017-06-01
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1017/dem.2017.6 (application/pdf)

Related works:
Working Paper: The health hump (2015) Downloads
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:ctl:louvde:v:83:y:2017:i:2:p:245-258

Access Statistics for this article

More articles in JODE - Journal of Demographic Economics from Cambridge University Press Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Sebastien SCHILLINGS ().

 
Page updated 2019-06-13
Handle: RePEc:ctl:louvde:v:83:y:2017:i:2:p:245-258