TAILIEUCHUNG - Health and Wealth of Elderly Couples: Causality Tests Using Dynamic Panel Data Models

The Baby Boomer generation is substantially different from earlier generations and policies need to account for those differences. They will remain active and independent longer than previous generations; as a group, they have sufficient wealth to manage retirement as no previous generation has; and they are going to challenge how the elderly are treated and what should be considered acceptable. Understanding the scope of the challenge is one of the first steps. The research summarized in this report begins to address this need. Based on projections developed during our research (see Figure ), we estimate. | I z A DISCUSSION PAPER SERIES IZA DP No. 1312 Health and Wealth of Elderly Couples Causality Tests Using Dynamic Panel Data Models Pierre-Carl Michaud Arthur van Soest September 2004 Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor Health and Wealth of Elderly Couples Causality Tests Using Dynamic Panel Data Models Pierre-Carl Michaud CentER Tilburg University and IZA Bonn Arthur van Soest RAND Corporation Tilburg University and IZA Bonn Discussion Paper No. 1312 September 2004 IZA . Box 7240 53072 Bonn Germany Phone 49-228-3894-0 Fax 49-228-3894-180 Email iza@ Any opinions expressed here are those of the author s and not those of the institute. Research disseminated by IZA may include views on policy but the institute itself takes no institutional policy positions. The Institute for the Study of Labor IZA in Bonn is a local and virtual international research center and a place of communication between science politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks research support and visitors and doctoral programs. IZA engages in i original and internationally competitive research in all fields of labor economics ii development of policy concepts and iii dissemination of research results and concepts to the interested public. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. IZA Discussion Paper No. 1312 September 2004 ABSTRACT Health and Wealth of Elderly Couples Causality Tests Using Dynamic Panel Data Models A positive relationship between socio-economic status SES and health the so-called health-wealth gradient is repeatedly found in most industrialized countries with similar

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