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DRAFT-Preliminary and Incomplete Please do not cite or quote without permission from the authors An Empirical Life-cycle Model of Demand for Mortality and Morbidity Risk Reduction

By J. R. Deshazo and Trudy Ann Cameron


This paper explores empirically the way that demand for health-enhancing and life-extending programs varies over the life-cycle for individuals. We test the hypothesis that, at any given current age, an individual’s schedule of marginal utility for future risk reductions rises on average with the age at which the future adverse health status would be experienced. However, as individuals age, we also hypothesize that there is a systematic downward shift in these schedules of marginal utility for risk reductions at future ages. Using data from a representative national sample of US households, we estimate the net effect of these two offsetting age effects for various risk-reducing policies. We identify the systematic age-varying determinants that explain why demand for some programs varies significantly with age, while demand for other programs does not. 1 Senior authorship is not assigned. Nominal lead authorship will rotate though the series of papers associated with this project

Year: 2011
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