Closing Down the Shop: Optimal Health and Wealth Dynamics near the End of Life
Mardi | 2016-05-31 15h-16h20 en sully05 Florian PELGRIN – Julien HUGONNIER – Pascal ST-AMOUR This paper examines health and wealth distributions under which agents approaching the end of life choose to close down the shop, i.e. a depletion of the health stock is optimally selected (and eventually accelerated), leading to states characterized by indifference between life, and death. We rely on a life cycle model (Hugonnier et al., 2013) with health spending, portfolio, insurance and consumption decisions for which we […]