Optimal Aging and Death: Understanding the Preston Curve

TY - JOUR

T1 - Optimal Aging and Death: Understanding the Preston Curve

AU - Dalgaard, Carl-Johan Lars

AU - Strulik, Holger

N1 - JEL: D91,I12, J17, J26

PY - 2014/6/1

Y1 - 2014/6/1

N2 - Does prosperity lead to greater longevity? If so, what is the strength of the income channel? To address these questions we develop a life cycle model in which households are subject to physiological aging. In modeling aging we draw on recent research in the fields of biology and medicine. The speed of the aging process, and thus the age of death, are endogenously determined by optimal health investments. A calibrated version of the model accounts well for the observed nonlinear cross-country link between longevity and income, also known as the Preston curve

AB - Does prosperity lead to greater longevity? If so, what is the strength of the income channel? To address these questions we develop a life cycle model in which households are subject to physiological aging. In modeling aging we draw on recent research in the fields of biology and medicine. The speed of the aging process, and thus the age of death, are endogenously determined by optimal health investments. A calibrated version of the model accounts well for the observed nonlinear cross-country link between longevity and income, also known as the Preston curve

U2 - 10.1111/jeea.12071

DO - 10.1111/jeea.12071

M3 - Journal article

SN - 1542-4766

VL - 12

SP - 672

EP - 701

JO - Journal of the European Economic Association

JF - Journal of the European Economic Association

IS - 3

M1 - 5

ER -