Effect of Elderly Poverty on Preferences: Evidence from Health Retirement Study

2019 Fiscal Year Final Research Report

• Project/Area Number: 17K03783
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Public finance/Public economy
• Research Institution: Toyo University (2018-2019); Kyoto Sangyo University (2017)
• Principal Investigator: HANAOKA Chie 東洋大学, 経済学部, 准教授 (30536032)
• Project Period (FY): 2017-04-01 – 2020-03-31
• Keywords: 貧困 / 選好 / 認知機能 / 精神的健康状態

Outline of Final Research Achievements

We examine how changes in financial resources around Social Security’s payday affect risk and time preferences among the elderly in the US. We find that the elderly become more risk tolerant just before payday, when financial resources are scarce. The effect is more pronounced among households that have little savings and heavy dependence on Social Security. Our results are not consistent with the hypothesis that financial hardship per se impedes cognitive function but rather with that mental health is deteriorated before payday. No effects are found on time preferences. We find similar evidence among the Japanese elderly.

Free Research Field

医療経済学

Academic Significance and Societal Importance of the Research Achievements

本研究には２点の貢献がある。第１に、分析者の知る限り、貧困状態が高齢者の選好に与える因果効果を推定した最初の研究である。第２に、リスク選好の安定性に対する議論に新たな結果を加えた研究である。先行研究では、紛争や自然災害、不況など、比較的規模の大きいショックがリスク選好に与える影響が検証されてきた。本研究では、常日頃生じる年金受給といった比較的規模の小さな所得のショックも選好に影響を与える可能性を示した。