Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123284
Authors: 
Schünemann, Johannes
Strulik, Holger
Trimborn, Timo
Year of Publication: 
2015
Series/Report no.: 
Discussion Papers, Center for European Governance and Economic Development Research 268
Abstract: 
Aging humans adapt to their worsening state of health and old people are usually happier than estimated by young individuals. In this paper we investigate how adaptation to a deteriorating state of health affects health spending, life expectancy, and the value of life. We set up a a life cycle model in which individuals are subject to physiological aging, calibrate it with data from gerontology, and compare behavior and outcomes of adapting and non-adapting individuals. While adaptation generally increases the value of life (by about 2 to 5 percent), its impact on health behavior and longevity depends crucially on whether individuals are aware of their adaptive behavior.
Subjects: 
health
adaption
aging
longevity
health care demand
JEL: 
D91
J17
J26
I12
Document Type: 
Working Paper

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