Subjective Health Expectations
25 Pages Posted: 11 Sep 2009 Last revised: 9 Oct 2014
Date Written: July 14, 2014
Subjective health expectations are derived using data from the Health and Retirement Study (HRS). We first use a Bayesian updating mechanism to correct for focal point responses and reporting errors of the original health expectations variable. We then test the quality of the health expectations measure and describe its correlation with various health indicators and other individual characteristics. Our results indicate that subjective health expectations do contain additional information that is not incorporated in subjective mortality expectations and that the rational expectations assumption cannot be rejected for subjective health expectations. Finally, the data suggest that individuals younger than 70 years of age seem to be more pessimistic about their health than individuals in their 70's.
Keywords: Subjective Expectations, Rational Health Expectations, Focal Points, Bayesian Updating of Expectations, Work Limiting Health Problems
JEL Classification: I10, D84, C11, C23
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Subjective Mortality Risk and Bequests
The Predictive Validity of Subjective Probabilities of Survival
Expectations, Life Expectancy, and Economic Behavior
Inter Vivos Transfers and Intended Bequests
Longevity Expectations and Death: Can People Predict Their Own Demise?
By V. Kerry Smith, Donald H. Taylor, ...
The Timing of Retirement: a Comparison of Expectations and Realizations
Individual Subjective Survival Curves
By Li Gan, Michael D. Hurd, ...
Anticipated and Actual Bequests
By Michael D. Hurd and James P. Smith
The Relationship between Job Characteristics and Retirement