|Title||Individual Subjective Survival Curves|
|Publication Type||Book Chapter|
|Year of Publication||2005|
|Authors||Gan, L, Hurd, MD, McFadden, D|
|Book Title||Analyses in the Economics of Aging|
|Publisher||University of Chicago Press|
Testing life-cycle models and other economic models of saving and consumption at micro level requires knowledge of individuals' subjective believes of their mortality risk. Previous studies have shown that individual responses on subjective survival probabilities are generally consistent with life tables. However, survey responses suffer serious problems caused by focal responses of zero and one. This paper suggests using a Bayesian update model that accounts for the problems encountered in focal responses. We also propose models that help us to identify how much each individual deviates from life table in her subjective belief. The resulting individual subjective survival curves have considerable variations and are readily applicable in testing economic models that require individual subjective life expectancies.
RDA ProCite field 6 : In ProCite field 8 : ed.
|Endnote Keywords|| |
Subjective Probabilities of Survival
|Endnote ID|| |
|Endnote Author Address|| |
NBER Working Paper 6478. Copies available from: National Bureau of Economic Research, 1050Mass achusetts Avenue, Cambridge, MA 02138. Website: www.nber.org