The Evolution of Health Over the Life Cycle

49 Pages Posted: 20 Jun 2019

See all articles by Roozbeh Hosseini

Roozbeh Hosseini

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics

Karen A. Kopecky

Federal Reserve Banks - Federal Reserve Bank of Atlanta

Kai Zhao

University of Connecticut - Department of Economics

Date Written: 2019-06-01

Abstract

We construct a unified objective measure of health status: the frailty index, defined as the cumulative sum of all adverse health indicators observed for an individual. First, we show that the frailty index has several advantages over self-reported health status, particularly when studying health dynamics. Then we estimate a stochastic process for frailty dynamics over the life cycle. We find that the autocovariance structure of frailty in panel data strongly supports a process that allows the conditional variance of frailty shocks to increase with age. Our frailty measure and dynamic process can be used by researchers to study the evolution of health over the life cycle and its economic implications.

Keywords: health, frailty index, life cycle profiles

JEL Classification: C33, I10, I14

Suggested Citation

Hosseini, Roozbeh and Kopecky, Karen A. and Zhao, Kai, The Evolution of Health Over the Life Cycle (2019-06-01). FRB Atlanta Working Paper No. 2019-12. Available at SSRN: https://ssrn.com/abstract=3406401 or http://dx.doi.org/10.29338/wp2019-12

Roozbeh Hosseini (Contact Author)

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics ( email )

Athens, GA 30602-6254
United States

Karen A. Kopecky

Federal Reserve Banks - Federal Reserve Bank of Atlanta ( email )

1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States

Kai Zhao

University of Connecticut - Department of Economics ( email )

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
19
Abstract Views
137
PlumX Metrics