How Does Health Status Affect Marginal Utility of Consumption? Evidence from China

How Does Health Status Affect Marginal Utility of Consumption? Evidence from China

This paper investigates how the deteriorating health status of an individual affects the marginal utility of non-medical consumption in China. By using 2011, 2013 and 2015 China Health and Retirement Longitudinal Study (CHARLS) data, we find that when the number of chronic diseases increases one sta...

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Bibliographic Details
Main Authors: Xiaoyu Wang, Chunan Wang
Format: Article
Language:English
Published: MDPI AG 2020-03-01
Series:International Journal of Environmental Research and Public Health
Subjects:
health status
marginal utility of consumption
charls
china
Online Access:https://www.mdpi.com/1660-4601/17/7/2234
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spelling doaj-ba9090e271f94bec98b61a9d0a474f462020-11-25T02:39:34ZengMDPI AGInternational Journal of Environmental Research and Public Health1660-46012020-03-01177223410.3390/ijerph17072234ijerph17072234How Does Health Status Affect Marginal Utility of Consumption? Evidence from ChinaXiaoyu Wang0Chunan Wang1National School of Development, Peking University, Beijing 100871, ChinaSchool of Economics and Management, Beihang University, Beijing 100191, ChinaThis paper investigates how the deteriorating health status of an individual affects the marginal utility of non-medical consumption in China. By using 2011, 2013 and 2015 China Health and Retirement Longitudinal Study (CHARLS) data, we find that when the number of chronic diseases increases one standard deviation, the marginal utility of consumption will increase by 16.0% and 20.0% for samples of the middle-aged and elderly individuals over 50 and 65 years of age, respectively. This result is to some extent contrary to the findings from the US. Different economic development stages, intergenerational norms and bequest motives may be reasons for these contrasting patterns between China and the US.https://www.mdpi.com/1660-4601/17/7/2234health statusmarginal utility of consumptioncharlschina
collection DOAJ
language English
format Article
sources DOAJ
author Xiaoyu Wang
Chunan Wang
spellingShingle Xiaoyu Wang
Chunan Wang
How Does Health Status Affect Marginal Utility of Consumption? Evidence from China
International Journal of Environmental Research and Public Health
health status
marginal utility of consumption
charls
china
author_facet Xiaoyu Wang
Chunan Wang
author_sort Xiaoyu Wang
title How Does Health Status Affect Marginal Utility of Consumption? Evidence from China
title_short How Does Health Status Affect Marginal Utility of Consumption? Evidence from China
title_full How Does Health Status Affect Marginal Utility of Consumption? Evidence from China
title_fullStr How Does Health Status Affect Marginal Utility of Consumption? Evidence from China
title_full_unstemmed How Does Health Status Affect Marginal Utility of Consumption? Evidence from China
title_sort how does health status affect marginal utility of consumption? evidence from china
publisher MDPI AG
series International Journal of Environmental Research and Public Health
issn 1660-4601
publishDate 2020-03-01
description This paper investigates how the deteriorating health status of an individual affects the marginal utility of non-medical consumption in China. By using 2011, 2013 and 2015 China Health and Retirement Longitudinal Study (CHARLS) data, we find that when the number of chronic diseases increases one standard deviation, the marginal utility of consumption will increase by 16.0% and 20.0% for samples of the middle-aged and elderly individuals over 50 and 65 years of age, respectively. This result is to some extent contrary to the findings from the US. Different economic development stages, intergenerational norms and bequest motives may be reasons for these contrasting patterns between China and the US.
topic health status
marginal utility of consumption
charls
china
url https://www.mdpi.com/1660-4601/17/7/2234
work_keys_str_mv AT xiaoyuwang howdoeshealthstatusaffectmarginalutilityofconsumptionevidencefromchina
AT chunanwang howdoeshealthstatusaffectmarginalutilityofconsumptionevidencefromchina
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