Economics at your fingertips  

Quantifying Health Shocks Over the Life Cycle

Taiyo Fukai, Hidehiko Ichimura and Kyogo Kanazawa

Papers from

Abstract: We first show (1) the importance of investigating health expenditure process using the order two Markov chain model, rather than the standard order one model, which is widely used in the literature. Markov chain of order two is the minimal framework that is capable of distinguishing those who experience a certain health expenditure level for the first time from those who have been experiencing that or other levels for some time. In addition, using the model we show (2) that the probability of encountering a health shock first de- creases until around age 10, and then increases with age, particularly, after age 40, (3) that health shock distributions among different age groups do not differ until their percentiles reach the median range, but that above the median the health shock distributions of older age groups gradually start to first-order dominate those of younger groups, and (4) that the persistency of health shocks also shows a U-shape in relation to age.

New Economics Papers: this item is included in nep-hea
Date: 2018-01
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link) Latest version (application/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:

Access Statistics for this paper

More papers in Papers from
Series data maintained by arXiv administrators ().

Page updated 2018-02-17
Handle: RePEc:arx:papers:1801.08746