This project will examine the dynamics of health and wealth in the U.S. population aged 50 and above. The proposed research continues an investigation into the causal links between measures of socioeconomic status (SES), such as education, liquid and non-liquid wealth, and income, and measures of health status, such as prevalence of various health conditions, and mortality. We will investigate causal patterns in incidence of health conditions for cohorts under age 65 where medical insurance and ability to work is an issue, as well as retired and Medicare-eligible cohorts. A particular focus will be individual expectations regarding health futures, and the impact of these expectations on savings and retirement behavior. An important component of the research will be further development of methods for identifying, estimating, and testing the significance of causal links in the presence of common factors; methods for handling item non-response and item response bias in surveys of the elderly, and their interaction with health status and survey administration; and methods for measuring individual expectations.
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