National Taiwan University
Department of Economics
Institutional Affiliation: National Taiwan University
NBER Working Papers and Publications
|July 2000||Elderly Asset Management and Health: An Empirical Analysis|
with Jonathan S. Feinstein: w7814
We present models of asset management by the elderly. We focus on saving, spend-down of assets, and gift-giving, and the influence of health on these precesses. We also study the evolution of elderly health and the impact of economic variables on health outcomes. We present results from estimating our models using data from waves one and two of the AHEAD dataset. Our model of asset management links elderly decisions about saving, spend-down of assets, and gift-giving in a system of equations. We divide households for which head and partner (if present) are in poor health and those for which head and partner are in good health; our specification allows for differences in health to affect both the average level of economic outcomes and the marginal effects of income and wealth on the out...