Long-term health investment when people underestimate their adaptation to old age-related health problems
Tóm tắt
This paper explores in a two-period model the economic implications of people’s tendency to underestimate their ability to adapt to age-related health problems. We model this misperception by assuming that the individual underestimates his future subjective health. Under standard assumptions, we show that, when people allocate their resources during their youth between present consumption, savings, and health investment, they invest more in health as long as the magnitude of the cross-marginal utility of health and consumption is not too negative.
Tài liệu tham khảo
Palmore, E.B.: Three decades of research on Ageism. Generations 24(3), 87–90 (2005)
Cutler, N.E., Whitelaw, N.W., Beattie, B.L.: American Perceptions of Aging in the 21st Century. The NCOA’s Continuing Study of the Myths and Reality of Aging. National Council on the Aging, Washington, DC (2002)
Frederick, S., Loewenstein, G.: Hedonic adaptation. In: Kahneman, D., Diener, E., Schwartz, N. (eds.). Scientific Perspectives on Enjoyment, Suffering, and Well-Being. Russell Sage Foundation, New York (1999)
Ashby, J., O’Hanlon, M., Buxton, M.J.: The time trade-off technique: how do the valuations of breast cancer patients compare to those of other groups? Qual. Life Res. 3, 257–265 (1994)
Wu, S.: Adapting to heart conditions: a test of the hedonic treadmill. J. Health Econ. 20, 495–508 (2001)
Riis, J., Loewenstein, G., Baron, J., Jepson, C., Fagerlin, A., Ubel, P.: Ignorance of hedonic adaptation to hemodialysis: a study using ecological momentary assessment. J. Exp. Psychol. 134(1), 3–9 (2005)
Brickman, P., Coates, D., Janoff-Bulman, R.: Lottery winners and accident victims: is happiness relative? J. Personal. Soc. Psychol. 36(8), 917–927 (1978)
Albrecht, G.L., Devlieger, P.J.: The disability paradox: high quality of life against all odds. Soc. Sci. Med. 48, 977–988 (1999)
Pagan-Rodriguez, R.: Onset of disability and life satisfaction: evidence from the German Socio-Economic Panel. Eur. J. Health. Econ. 11(5), 471–485 (2010)
Sackett, D.L., Torrance, G.W.: The utility of different health states as perceived by the general public. J. Chronic Dis. 31, 697–704 (1978)
Boyd, N., Sutherland, H.J., Heasman, K.Z., Tritcher, D.L., Cummings, B.: Whose utilities for decision analysis? Med. Decis. Mak. 10, 58–67 (1990)
Hurst, N.P., Jobanputra, P., Hunter, M., Lambert, M., Lockhead, A., Brown, H.: Validity of EuroQolF: A generic health status instrument for patients with rheumatoid arthritis. Br. J. Rheumatol. 33, 655–662 (1994)
Buick, D.L., Petrie, K.J.: “I know just how you feel”: The validity of healthy women’s perceptions of breast cancer patients receiving treatment. J. Appl. Soc. Psychol. 32, 110–123 (2002)
Baron, J., Asch, D.A., Fagerlin, A., Jepson, C., Loewenstein, G., Riis, J., et al.: Effect of assessment method on the discrepancy between judgments of health disorders people have and do not have: A web study. Med. Decis. Mak. 23, 422–434 (2003)
Pyne, J.M., Fortney, J., Tripathi, S., Feeny, D., Ubel, P.A., Brazier, J.: How bad is depression? Preference score estimates from depressed patients and the general population. Health Serv. Res. 44, 1406–1423 (2009)
Lacey, H.P., Fagerlin, A., Loewenstein, G., Smith, D.M., Riis, J., Ubel, P.A.: Are they really that happy? Exploring scale recalibration in estimates of well-being. Health Psychol. 27(6), 669–675 (2008)
Slevin, M.L., Stubbs, L., Plant, H.J., Wilson, P., Gregory, W.M., Armes, P.J., et al: Attitudes to chemotherapy: comparing views of patients with cancer with those of doctors, nurses, and general public. Br. Med. J. 300(6737):1458–1460 (1990)
Ubel, P., Loewenstein, G., Schwarz, N., Smith, D.: Misimagining the unimaginable: the happiness gap and healthcare decision making. Health Psychol. 24(4), S57–S62 (2005)
Ubel, P.A., Loewenstein, G., Hershey, J., et al.: Do nonpatients underestimate the quality of life associated with chronic health conditions because of a focusing illusion? Med. Dec. Mak. 21(3), 190–199 (2001)
Damschroder, L.J., Zikmund-Fisher, B.J., Ubel, P.A.: The impact of considering adaptation in health state valuation. Soc. Sci. Med. 61(2), 267–277 (2005)
Gilbert Daniel, T., Pinel, E.C., Wilson, T.D., Blumberg, S.J., Wheatley, T.P.: Immune neglect: a source of durability bias in affective forecasting. J. Pers. Soc. Psychol. 75, 617–638 (1998)
Blanchflower, D.G., Oswald Andrew, J.: Is well-being U-shaped over the life cycle? Soc. Sci. Med. 66(8), 1733–1749 (2006)
Yang, Y.: Social inequalities in happiness in the United States, 1972 to 2004: an age-period cohort analysis. Am. Sociol. Rev. 73, 204–226 (2008)
Lacey, H., Smith, D., Ubel, P.: Hope I die before I get old: mispredicting happiness across the adult lifespan. J. Happiness Stud. 7(2), 167–182 (2006)
Bryce, C.L., Loewenstein, G., Arnold, R.M., Schooler, J., Wax, R.S., Angus, D.C.: Quality of death and dying: assessing the importance people place on different domains of end-of-life care. Med. Care 42(5), 423–431 (2004)
Knapp, J.L., Stubblefield, P.: Changing students’ perceptions of aging: the impact of an intergenerational service learning course. Educ. Gerontolog. 26, 611–621 (2000)
Van Maanen, H.M.T.: Being old does not always mean being sick: Perspectives on conditions of health as perceived by British and American elderly. J. Adv. Nur. 13, 701–709 (1988)
Charles, S., Mather, M., Carstensen, L.: Aging and emotional memory: the forgettable nature of negative images for older adults. J. Exp. Psychol. 132(2), 310–324 (2003)
Fung, H., Carstensen, L.: Sending memorable messages to the old: age differences in preferences and memory for advertisements. J. Personal. Soc. Psychol. 85(1), 163–178 (2003)
Carstensen, L., Pasupathi, M., Mayr, U., Nesselroade, J.: Emotional experience in everyday life across the adult life span. J. Personal. Soc. Psychol. 79, 644–655 (2000)
Ross, C., Mirowsky, J.: Age and the balance of emotions. Soc. Sci. Med. 66(12), 2391–2400 (2008)
Carstensen, L., Isaacowitz, D., Charles, S.: Taking time seriously: a theory of socioemotional selectivity. Am. Psychol. 54, 165–181 (1999)
Loewenstein, G., O’Donoghue, T., Rabin, M.: Projection bias in predicting future utility. Q. J. Econ. 118(4), 1209–1248 (2003)
Fried, T.R., Byers, A.L., Gallo, W.T., Van Ness, P.H., Towle, V.R., O’Leary, J.R., et al.: Prospective study of health status preferences and changes over time in older adults. Arch. Intern. Medicine. 166, 890–895 (2006)
Tsevat, J., Dawon, N.B., Wu, A.W., Lynn, J., Soukup, J.R., Cook, E.F., et al.: Health values of hospitalized patients 80 years or older. J. Am. Med. Assoc. 279, 371–375 (1998)
O’Brien, L., Grisso, J.A., Maislin, G., LaPann, K., Krotki, K.P., Greco, P.J., et al.: Nursing home residents’ preferences for life-sustaining treatments. J. Am. Med. Assoc. 274, 1775–1779 (1995)
Winter, L., Parker, B.: Current Health and preferences for life-prolonging treatments: an application of prospect theory to end-of-life decision making. Soc. Sc. Med. 65, 1695–1707 (2007)
Kahneman, D., Tversky, A.: Prospect theory: an analysis of decision under risk. Econometrica 47, 263–291 (1979)
Macé, S., Le Lec, F.: On fatalist long-term health behavior. J. Eco. Psychol. 32(3), 434–439 (2011)
Gjerde, J., Grepperudb, S., Kverndokk, S.: On adaptation and the demand for health. Appl. Econ. 37, 1283–1301 (2005)
Carbone, J.C., Kverndokk, S., Rogeberg, O.J.: Smoking, health, risk and perception. J. Health Econ. 24, 631–653 (2005)
Groot, W.: Adaptation and scale of reference bias in self-assessments of quality of life. J. Health Econ. 19, 403–420 (2000)
Demakakos, P., Hacker, E., Gjonça, E.: Perceptions of aging in: retirement, health and relationships of the older population in England. In: Banks, J., Breeze, E., Carli, L., Nazroo, J. (eds.) The 2004 English longitudinal study of ageing (wave 2). The Institute for Fiscal Studies, London (2006)
Brickman, P., Campbell, D.T.: Hedonic relativism and planning the good society. In: Appley, M.H. (ed.) Adaptation Level Theory: A Symposium, pp. 287–302. Academic, New York (1971)
Diener, E., Lucas, R.E., Scollon, C.N.: Beyond the hedonic treadmill. Am. Psychol. 61(4), 305–314 (2006)
Carroll, C.D., Overland, J., Weil, D.N.: Saving and growth with habit formation. Am. Econ. Rev. 90, 341–355 (2000)
Janz, N.K., Champion, V.L., Strecher, V.J.: The health belief model. In: Glanz, K., Rimer, B.K., Lewis, F.M. (eds.) Health behavior and health education: theory, research, and practice 3rd edn, pp. 45–66. Jossey-Bass. San Francisco, CA (2008)
Brewer, N.T., Chapman, G.B., Gibbons, F.X., Gerrard, M., McCaul, K.D., Weinstein, N.D.: Meta-analysis of the relationship between risk perception and health behavior: the example of vaccination. Health Psychol. 26, 136–145 (2007)
Prentice-Dunn, S., Mcmath, B., Cramer, R.: Protection motivation theory and stages of change in sun protective behavior. J. Health Psychol. 14, 297–305 (2009)
Ebner, N.C., Freund, A.M., Baltes, P.B.: Developmental changes in personal goal orientation from young to late adulthood: from striving for gains to maintenance and prevention of losses. Psychol. Aging 21(4), 664–678 (2006)
Slevec, J., Tiggerman, M.: Attitudes toward cosmetic surgery in middle-aged women: body image, aging anxiety, and the media. Psychol. Wom. Q. 34(1), 65–74 (2010)
Finkelstein, A., Luttmer, E., Notowidigdo, M.: Approaches to estimating the health state dependence of the utility function. Am. Econ. Rev. 99(2), 116–121 (2009)
Sloan, F., Viscusi, K., Chesson, H., Conover, C., Whetten-Goldstein, K.: Alternative approaches to valuing intangible health losses: the evidence for multiple sclerosis. J. Health Econ. 17(4), 475–497 (1998)
Viscusi, K., Evans, W.: Utility functions that depend on health status: estimates and economic implications. Am. Econ. Rev. 80(3), 353–374 (1990)
Evans, W., Viscusi, K.: Estimation of state dependent utility functions using survey data. Rev. Econ. Stat. 73(1), 94–104 (1991)
Finkelstein, A., Luttmer, E., Notowidigdo, M.: What good is wealth without health? The effect of health on the marginal utility of consumption. NBER Work. Pap. 14089 (2008)
Lillard, L., Weiss, Y.: Uncertain health and survival: effects of end-of-life consumption. J. Bus. Econ. Stat. 15(2), 254–268 (1997)
Edwards, R.: Health risk and portfolio choice. J. Busin. Econ. Stat. 26(4), 472–485 (2008)
Walsh, E.: What would it be like for me and for you? Judged impact of chronic health conditions on happiness. Med. Decis. Making 29, 15–22 (2009)
Kősegi, B., Rabin, M.: A model of reference-dependant preferences. Q. J. Econ. 121, 1133–1265 (2006)