The Asset Cost of Poor Health

DSpace/Manakin Repository

The Asset Cost of Poor Health

Citable link to this page

 

 
Title: The Asset Cost of Poor Health
Author: Poterba, James; Venti, Steven F.; Wise, David Alsgaard

Note: Order does not necessarily reflect citation order of authors.

Citation: Poterba, James M., Steven F. Venti, and David A. Wise. 2011. The Asset Cost of Poor Health. HKS Faculty Research Working Paper Series RWP11-005, John F. Kennedy School of Government, Harvard University
Full Text & Related Files:
Abstract: This paper examines the correlation between poor health and asset accumulation for households in the first nine waves of the Health and Retirement Survey. Rather than enumerating the specific costs of poor health, such as out of pocket medical expenses or lost earnings, we estimate how the evolution of household assets is related to poor health. We construct a simple measure of health status based on the first principal component of HRS survey responses on self-reported health status, diagnoses, ADLs, IADL, and other indicators of underlying health. Our estimates suggest large and substantively important correlations between poor health and asset accumulation. We compare persons in each 1992 asset quintile who were in the top third of the 1992 distribution of latent health with those in the same 1992 asset quintile who were in the bottom third of the latent health distribution. By 2008, those in the top third of the health distribution had accumulated, on average, more than 50 percent more assets than those in the bottom third of the health distribution. This “asset cost of poor health” appears to be larger for persons with substantial 1992 asset balances than for those with lower balances.
Published Version: http://web.hks.harvard.edu/publications/workingpapers/citation.aspx?PubId=7590
Terms of Use: This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:4669670
Downloads of this work:

Show full Dublin Core record

This item appears in the following Collection(s)

 
 

Search DASH


Advanced Search
 
 

Submitters