SUBPROJECT 3: THE JOINT EVOLUTION OF HEALTH AND ASSETS IN LATER LIFE This subproject analyzes patterns of asset accumulation and drawdown over the course of later life, and how asset dynamics are affected by people's evolving health as they age. By looking at all assets, one can better account for the full cost of poor health, including not only out-of-pocket medical expenditures but all other costs related to poor health. The subproject will estimate the """"""""asset cost"""""""" of poor health and how it varies by family status, by the level of assets, and across different categories of assets. It will also explore the specific mechanisms through which health may affect asset holdings, such as through work decisions and different insurance arrangements. Our models will also be used to predict the effect of current health shocks on the future evolution of assets;to predict the effect of Social Security changes on the subsequent evolution of assets;to describe the distribution of assets by family status and by health status;and to simulate the proportion of households that will """"""""exhaust"""""""" various asset categories if past patterns of asset evolution apply prospectively. We believe that our findings will lead to greatly enhanced understanding of the financial consequences of poor health. The subproject is also important in understanding patterns of asset drawdown in later life more generally, and how different asset categories are used for different purposes and with differing draw down characteristics. For example, the subproject will consider the potential role of public and private annuity products in providing retirement income security, fielding two surveys to understand the apparent preference that many households exhibit for holding assets in a non-annuitized form.

Public Health Relevance

Our proposed analysis will estimate the joint post-retirement evolution of health status and assets and will estimate the full asset cost of poor health, which may be much larger than the direct out-of-pocket medical expenditures or the cost of specific health events that have been the focus of most previous studies on this topic.

National Institute of Health (NIH)
National Institute on Aging (NIA)
Research Program Projects (P01)
Project #
Application #
Study Section
Special Emphasis Panel (ZAG1)
Project Start
Project End
Budget Start
Budget End
Support Year
Fiscal Year
Total Cost
Indirect Cost
National Bureau of Economic Research
United States
Zip Code
Deaton, Angus (2018) What do self-reports of wellbeing say about life-cycle theory and policy? J Public Econ 162:18-25
Lourenco, Joana; Serrano, Antonio; Santos-Silva, Alice et al. (2018) Cardiovascular Risk Factors Are Correlated with Low Cognitive Function among Older Adults Across Europe Based on The SHARE Database. Aging Dis 9:90-101
Deaton, Angus; Cartwright, Nancy (2018) Understanding and misunderstanding randomized controlled trials. Soc Sci Med 210:2-21
Cimas, M; Ayala, A; Sanz, B et al. (2018) Chronic musculoskeletal pain in European older adults: Cross-national and gender differences. Eur J Pain 22:333-345
Dobkin, Carlos; Finkelstein, Amy; Kluender, Raymond et al. (2018) Myth and Measurement - The Case of Medical Bankruptcies. N Engl J Med 378:1076-1078
Schwartz, Ella; Khalaila, Rabia; Litwin, Howard (2018) Contact frequency and cognitive health among older adults in Israel. Aging Ment Health :1-9
Sand, Gregor; Gruber, Stefan (2018) Differences in Subjective Well-being Between Older Migrants and Natives in Europe. J Immigr Minor Health 20:83-90
Reus-Pons, Matias; Mulder, Clara H; Kibele, Eva U B et al. (2018) Differences in the health transition patterns of migrants and non-migrants aged 50 and older in southern and western Europe (2004-2015). BMC Med 16:57
Henseke, Golo (2018) Good jobs, good pay, better health? The effects of job quality on health among older European workers. Eur J Health Econ 19:59-73
Dobkin, Carlos; Finkelstein, Amy; Kluender, Raymond et al. (2018) The Economic Consequences of Hospital Admissions. Am Econ Rev 108:308-52

Showing the most recent 10 out of 403 publications