(UM11-12) - The Influence of Public Policy on Health, Wealth and Mortality
John Karl Scholz and Ananth Seshadri
Our proposed work has two primary goals. Our first goal is to model the effect that income has on health, health has on income, and the latent productivity in health capital production. Our second contribution will be to use the new model to explore the effects of Social Security and other federal social insurance and transfer programs on health and wealth over the life cycle. Since the model determines life expectancy, it is well-suited for analyzing the impact of policies, such as changes to Social Security, on survival probabilities, disability, wealth, and broader measures of health and well-being.