Tag: health
Abstract The effects of divorce on individuals and on society as a whole has been widely debated in public discussion of American life. The dialogue was sparked by the dramatic rise in the number of U.S. divorces which began in the 1960s: Figure 1 illustrates that the divorce rate doubled from 10.6 to 20.3 divorces…
Abstract This paper develops and estimates a closed-form model of Bayesian learning of subjective survival beliefs within the framework of Choquet decision theory. Data from the Health and Retirement Study (HRS) indicate that, on average, young respondents underestimate their true survival probability whereas old respondents overestimate their survival probability. Such subjective beliefs violate the rationa…
