Carl-Johan Dalgaard får optaget artikel i Journal of the European Economic Association.
Does prosperity lead to greater longevity? If so, what is the strength of the income channel? To address these questions this research develops a life cycle model in which households are subject to physiological aging. Aging is modeled by drawing on recent advances with the fields of biology and medicine. In the model, the speed of the aging process, and thus the time of death, are endogenously determined by optimal health investments. A calibrated version of the model accounts well for the observed non-linear cross-country link between longevity and income, also known as “the Preston Curve". The paper, “Optimal Aging and Death: Understanding the Preston Curve”, is joint work with Holger Strulik of University of Göettingen.