Right Before the End: Asset Decumulation at the End of Life

12 Pages Posted: 20 Aug 2006

See all articles by Eric French

Eric French

Department of Economics; Institute for Fiscal Studies (IFS)

Mariacristina De Nardi

University College London, Economics Dpt.; Federal Reserve Bank of Chicago; National Bureau of Economic Research (NBER) - Public Economics

John Bailey Jones

Federal Reserve Bank of Richmond; SUNY at Albany - School of Business

Oleysa Baker

Federal Reserve Bank of Chicago

Phil Doctor

Federal Reserve Bank of Chicago

Abstract

Using data from the Asset and Health Dynamics of the Oldest Old survey, the authors find that the assets of people who die decline much faster than the assets of people who survive, even after controlling for age, sex, and initial asset levels. Out-of-pocket medical expenses right before death can deplete the assets of many elderly households and constitute an important reason to keep assets in old age.

Keywords: asset decumulation, death, medical expenditures, Macroeconomics: Consumption, Saving, Aggregate Physical and Financial Consumer Wealth, Economics of the Elderly, Economics of the Handicapped

Suggested Citation

French, Eric and De Nardi, Mariacristina and Jones, John B. and Baker, Oleysa and Doctor, Phil, Right Before the End: Asset Decumulation at the End of Life. Economic Perspectives, pp. 2-13, Third Quarter 2006, Available at SSRN: https://ssrn.com/abstract=925275

Eric French (Contact Author)

Department of Economics ( email )

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Mariacristina De Nardi

University College London, Economics Dpt. ( email )

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John B. Jones

Federal Reserve Bank of Richmond ( email )

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SUNY at Albany - School of Business ( email )

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Oleysa Baker

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

Phil Doctor

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

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