Consumption and Differential Mortality

TitleConsumption and Differential Mortality
Publication TypeReport
Year of Publication2011
AuthorsHurd, MD, Rohwedder, S
InstitutionThe University of Michigan, Michigan Retirement Research Center
KeywordsConsumption and Savings, Demographics, Health Conditions and Status, Methodology
Abstract

It is well-established that differential mortality according to wealth or income introduces bias into age profiles of these variables when estimated on cross-sectional or synthetic cohort data. However, little is known about whether this association is also found with consumption, and if so, how strong this association is. In this paper we use panel data on total household spending from the Health and Retirement Study (HRS) and its supplemental study, the Consumption and Activities Mail Survey (CAMS), to estimate differences in consumption by survival status to the next survey wave. We quantify the bias in age profiles of consumption that results from differential mortality when estimating the age profiles on cross-sectional data or on synthetic cohort data. We find that the bias is smaller than that found for wealth or income.

URLhttp://www.mrrc.isr.umich.edu/dl.cfm?pid=803andtype=102
Endnote Keywords

consumption/differential mortality/differential mortality/Socioeconomic Differences/synthetic cohort data/synthetic cohort data/Methodology

Endnote ID

62808

Citation Key5914