@article {5945,
	title = {The Interplay of Wealth, Retirement Decisions, Policy and Economic Shocks},
	year = {2012},
	institution = {Ann Arbor, The University of Michigan},
	abstract = {We develop a model of health investments and consumption over the life cycle where health affects longevity, provides flow utility, and retirement is endogenous. We develop a rich, numerical life-cycle model to study the complex interrelationship between health and wealth and the age of retirement. The decision to retire depends on a number of factors including earnings and health shocks, demographic characteristics, preferences, pensions, and social security. We incorporate these features in a computational model of optimal wealth and retirement decisions, solving the model household-by-household using data from the HRS. We use the model to study how workers would respond to an increase in the early eligibility age of retirement (EEA), and to what extent will the bad economy alter retirement plans. We find that increasing the EEA results in sizeable responses to the age of retirement but does not affect health outcomes very much. A 20 percent reduction in wealth induces households to delay retirement by one year, on average, with poor households being relatively unaffected.},
	keywords = {Consumption and Savings, Demographics, Event History/Life Cycle, Health Conditions and Status, Healthcare, Net Worth and Assets, Retirement Planning and Satisfaction, Social Security},
	url = {http://www.mrrc.isr.umich.edu/publications/publications_download.cfm?pid=860},
	author = {John Karl Scholz and Ananth Seshadri}
}
@article {5915,
	title = {The Influence of Public Policy on Health, Wealth and Mortality},
	number = {UM11-12},
	year = {2011},
	institution = {The University of Michigan},
	address = {Ann Arbor, MI},
	abstract = {In this project we extend an augmented lifecycle model, incorporating a Grossman-style model of health capital, to enhance understanding of factors influencing consumption, wealth and health. We develop three primary results when using the model to explore the effects of stylized versions of Medicare and Social Security on wealth and longevity. First, our model calibration implies consumption and health are complements. As health depreciates with age, households will get less utility from consumption than would be in the case of a lifecycle model that does not endogenize health. Second, it appears that forward-looking households, when confronted by a substantially reduced safety net, will respond by reducing consumption and by reducing their health investment and therefore longevity. Third, there is a potentially important difference between short- and long- run responses to policy.},
	keywords = {Consumption and Savings, Event History/Life Cycle, Health Conditions and Status, Net Worth and Assets, Public Policy},
	url = {https://mrdrc.isr.umich.edu/projects/the-influence-of-public-policy-on-health-wealth-and-mortality/},
	author = {John Karl Scholz and Ananth Seshadri}
}
