Description/Abstract
We use exogenous variation in Social Security payments created by the Social Security benefits notch to estimate how retirees' use of prescription medications responds to changes in their incomes. In contrast to estimates obtained using ordinary least squares, instrumental variables estimates based on the notch suggest that lower-income retirees exhibit considerable income sensitivity in their use of prescription drugs. Our estimates are potentially useful for thinking about the health implications of changes in transfer payments to the elderly and for evaluating the benefits of the recently enacted Medicare prescription drug benefit.
Document Type
Working Paper
Date
2004
Keywords
Social Security, prescription medication, geriatrics, Medicare
Language
English
Series
Working Papers Series
Disciplines
Geriatrics
Recommended Citation
Moran, John R. and Simon, Kosali Ilayperuma, "Income and the Use of Prescription Drugs by the Elderly: Evidence from the Notch Cohorts" (2004). Center for Policy Research. 97.
https://surface.syr.edu/cpr/97
Source
Metadata from RePEc
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
Additional Information
Harvest from RePEc at http://repec.org