Publication
Understanding cognitive health, its decline, and the investments that shape its age profile in later life are important in an aging society, and yet, estimating the cognitive health production function is complicated by non-random mortality and sample attrition. The author studies this dynamic selection problem in the context of education, race, and cigarette smoking, characteristics thought to affect the level, but not slope, of cognitive decline. The author develops a general framework that involves estimation of a system of dynamic equations consistent with the Grossman (1972) model.
