An Expanded Model of Health and Retirement

David Cutler, Jeffrey Liebman, Mark Shepard, Seamus Smyth

NBER Retirement Research Center Paper No. NB 07-15
Issued in December 2007

This draft contains initial results from the latest version of our model of health and retirement. Compared to previous version, the new version of our model now handles both married couples and single workers, rather than treating all workers as single. In addition, our model now unifies disability and retirement in a single model. The new version also uses the higher quality data available from the restricted versions of the Health and Retirement Survey. Finally, the model is estimated by matching additional moments reflecting heterogeneity in retirement behavior by different types of households. We continue to apply the model to studying the question of the optimal eligibility age for Social Security.

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Acknowledgments