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In this paper we develop a general equilibrium overlapping generations (OLG) model with health shocks to study the life-cycle behaviors of health care spending and financing. We show that a calibrated version of our model is able to match the life-cycle trend of insurance take up ratios and average medical expenditure from the Medical Expenditure Panel(More)
Inclusion of means testing into pension programs allows governments to better direct benefits to those most in need and to control funding costs by providing flexibility to control the condition for receiving pension benefits (extensive margin) and the benefit level (intensive margin). We investigate how the presence of the extensive margin influences the(More)
Deficiency of guanidinoacetate methyltransferase (GAMT) causes creatine depletion and guanidinoacetate accumulation in brain with the latter deemed to be responsible for the severe seizure disorder seen in affected patients. We studied electrical brain activity and GABAA mediated mechanisms of B6J.Cg-Gamttm1Isb mice. Electrocorticographic (ECoG) monitoring(More)
We investigate welfare and aggregate implications of a pay as you go (PAYG) social security system in a dynastic framework in which agents have self-control problems. The presence of these two additional factors at the same time affects individuals’ intertemporal decision problems in two opposite directions. That is, on the one hand individuals prefer to(More)
In this paper we argue that the strategic interaction between the labor supply decision of the elderly and private transfers from their children lowers the opportunity cost of leisure of the elderly. This in turn magnifies the crowding-out effect of public pensions on the labor supply of the elderly. We show that this mechanism has implications for(More)
We use an OLG model with heterogenous agents who choose how much to spend on their health under health uncertainty in order to study the effect of transitioning from a system with private health insurance for young agents and Medicare for old agents to a system with health savings accounds (HSAs) for young agents and Medicare for the old. We focus on(More)
We analyze whether a consumer driven health care plan like the newly established Health Savings Accounts (HSAs) can reduce health care expenditures in the United States and increase the fraction of the population with health insurance. We use an overlapping generations model with health uncertainty and endogenous health care spending. Agents can choose(More)