Author

Contributions

  • Yin, Yong. - Contributor
  • National Bureau of Economic Research. - Contributor

Publication

2004 - National Bureau of Economic Research, Cambridge, Mass, Massachusetts

Language

English

Word Count

8,750 words, Guess

Page Count

35 pages

Identifiers

Description

"Little attempt has been made so far to quantify the extent to which individual willingness to spend on life protection may account for the observed trends and diversities in age-specific life expectancies across individuals and over time. We address these issues via calibrated simulations of a dynamic, life-cycle model of life protection in which life's end is a stochastic event, age-specific mortality risks are endogenous variables, and spending on life protection is set jointly with related insurance options: life insurance as well as annuities. A unique feature of our model is that it links age-specific mortality risks and implicit private values-of-life-saving (VLS) as "dual variables", and estimates them jointly. It also offers new insights about the concept and measurement of VLS. Life protection is estimated to have a non-negligible impact on age-specific life expectancies. It can account for significant portions of observed inequalities in life expectancies across population groups and over time, as well as for a wide range of empirical estimates of VLS produced via the conventional "willingness to pay" approach"--National Bureau of Economic Research web site.

Subjects

Topics

Life expectancyHealth behaviorSelf-care, HealthMathematical modelsHealth behavior -- Mathematical modelsSelf-care, Health -- Mathematical models

Series Statement

  • NBER working paper series -- no. 10759.
  • Working paper series (National Bureau of Economic Research) -- working paper no. 10759.

Links

Other Editions

  • Explaining diversities in age-specific life expectancies and values of life savingNational Bureau of Economic Research2004

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