Abstract
Older wealth holders spend down assets much more slowly than predicted by classic life-cycle models. This paper introduces healthdependent utility into a model with incomplete markets in which preferences for bequests, expenditures when in need of long-term care, and ordinary consumption combine with health and longevity uncertainty.
Original language | English (US) |
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Pages (from-to) | 2375-2451 |
Number of pages | 77 |
Journal | Journal of Political Economy |
Volume | 128 |
Issue number | 6 |
DOIs | |
State | Published - Jun 1 2020 |
ASJC Scopus subject areas
- Economics and Econometrics