Subjective Mortality Expectations and Consumption and Saving Behaviours among the Elderly

TitleSubjective Mortality Expectations and Consumption and Saving Behaviours among the Elderly
Publication TypeJournal Article
Year of Publication2010
AuthorsSalm, M
JournalCanadian Journal of Economics
Volume43
Issue3
Pagination1040-57
KeywordsConsumption and Savings, Employment and Labor Force, Event History/Life Cycle, Health Conditions and Status, Women and Minorities
Abstract

Life expectancy is an important factor that individuals have to take into account for saving and consumption choices. The life-cycle model of consumption and saving behaviour predicts that consumption growth should decrease with higher mortality rates. The aim of this study is to test this hypothesis based on data about subjective longevity expectations from the Health and Retirement Study merged with detailed consumption data from two waves of the Consumption and Activities Mail Survey. This study finds that an increase in subjective mortality by 1 corresponds to an annual decrease in consumption of non-durable goods of around 1.8 .

Notes

Using Smart Source Parsing August pp

Endnote Keywords

Intertemporal Consumer Choice/Life Cycle Models and Saving/Saving/Health Production/Economics of the Elderly/Economics of the Handicapped/Non-labor Market Discrimination/Consumption/Life Cycle/Mortality Rates/Saving

Endnote ID

23990

Citation Key7508