NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Living Arrangements: Health and Wealth Effects

Axel Borsch-Supan, Daniel McFadden, Reinhold Schnabel

NBER Working Paper No. 4398
Issued in July 1993
NBER Program(s):   AG

This paper investigates the choice of living arrangements among elderly Americans. It has two specific aims. First, because health is not directly measurable and can only be described by indicators such as ADLs and IADLs, it explores a new econometric approach to model the influence of the latent health status on living arrangements. Second, it exploits the NBER Economic Supplement of the Longitudinal Study on Aging to investigate the role of housing and financial wealth in the choice of living arrangements.

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Document Object Identifier (DOI): 10.3386/w4398

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