Optimal Aging and Death: Understanding the Preston Curve

Carl-Johan Dalgaard and Holger Strulik

No 11-09, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: 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.

Keywords: aging; longevity; health investments; savings; Preston curve (search for similar items in EconPapers)
JEL-codes: D91 I12 J17 J26 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2010-07, Revised 2011-03
New Economics Papers: this item is included in nep-age, nep-evo and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.econ.ku.dk/english/research/publications/wp/dp_2011/1109.pdf/ (application/pdf)

Related works:
Journal Article: OPTIMAL AGING AND DEATH: UNDERSTANDING THE PRESTON CURVE (2014)
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:kud:kuiedp:1109

Access Statistics for this paper

More papers in Discussion Papers from University of Copenhagen. Department of Economics Oester Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Hoffmann ().