Abstract

http://ssrn.com/abstract=1327310
 
 

References (9)



 
 

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Approaches to Estimating the Health State Dependence of the Utility Function


Amy Finkelstein


Massachusetts Institute of Technology (MIT) - Department of Economics; National Bureau of Economic Research (NBER)

Erzo F. P. Luttmer


Dartmouth College; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Matthew Notowidigdo


University of Chicago - Booth School of Business

January 8, 2009

HKS Working Paper No. RWP09-002

Abstract:     
If the marginal utility of consumption depends on health status, this will affect the economic analysis of a number of central problems in public finance, including the optimal structure of health insurance and optimal life cycle savings. In this paper, we describe the promises and challenges of various approaches to estimating the effect of health on the marginal utility of consumption. Our basic conclusion is that while none of these approaches is a panacea, many offer the potential to shed important insights on the nature of health state dependence.

Number of Pages in PDF File: 15

Keywords: State dependence, health, insurance, marginal utility, Microeconomics, Education Policy, Human Resources, Labor and Education

JEL Classification: D12, I1

working papers series


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Date posted: January 14, 2009  

Suggested Citation

Finkelstein, Amy and Luttmer, Erzo F. P. and Notowidigdo, Matthew, Approaches to Estimating the Health State Dependence of the Utility Function (January 8, 2009). HKS Working Paper No. RWP09-002. Available at SSRN: http://ssrn.com/abstract=1327310 or http://dx.doi.org/10.2139/ssrn.1327310

Contact Information

Amy Finkelstein
Massachusetts Institute of Technology (MIT) - Department of Economics ( email )
50 Memorial Drive
E52-391
Cambridge, MA 02142
United States
617-588-0361 (Phone)
617-868-7242 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Erzo F.P. Luttmer (Contact Author)
Dartmouth College ( email )
Hanover, NH 03755
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Matthew Notowidigdo
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
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References:  9
Citations:  4

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