|Title||The Microeconomic Effect of Longevity on Savings: Evidence from the Health and Retirement Study|
|Year of Publication||2005|
|University||Department of Economics, Harvard College|
|Keywords||Consumption and Savings, Health Conditions and Status|
This paper seeks to address the microeconomic link between health, particularly longevity, and savings rates. Using the expansive Health and Retirement Study, a microeconomic model for savings is generated. Both ordinary least squares and two stage least squares regressions, with height as an instrument for life expectancy estimates found in the survey, show a tentative positive link between longevity and savings. In the grander scheme, these results underscore the returns to an economy from investment in health care, decreased morbidity and increased longevity.
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