Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/121759
Authors: 
Strulik, Holger
Year of Publication: 
2015
Series/Report no.: 
Discussion Papers, Center for European Governance and Economic Development Research 263
Abstract: 
In this paper, I suggest a novel explanation for a hump-shaped ageconsumption profile, based on human aging. The model integrates health in the utility function and utilizes recent estimates on 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.
Subjects: 
health
aging
life-cycle consumption
JEL: 
D91
E21
I10
Document Type: 
Working Paper

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