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Price and income changes for the elderly.

It is widely believed that inflation is harmful to the elderly. Two frequent arguments in support of this belief are that some important income sources for the elderly are less than fully indexed to inflation and that the elderly spend heavily on goods and services whose prices rise faster than the average inflation rate. This article focuses on both the income issue and the expenditure issue. The first part of the article evaluates the question of whether an economy-wide consumer price index is an adequate measure of the cost of living for the elderly population. The evaluation is made by constructing a consumer price index using expenditure weights that are more appropriate for the elderly population. It is found that over the 1967-79 period the movement of this constructed index was very similar to that of the economy-wide index. The constructed index did grow slightly faster than the economy-wide index, however. The second part of the article focuses on changes in average real incomes of the elderly over the 1970-77 period. Two dimensions of income changes are examined. First, the incomes of families headed by persons aged 65 or over are compared at different points in time. It is found that average real income of this age class was 10 percent higher in 1977 than in 1970. Second, the 1970 and 1977 incomes of the cohort of families headed by persons aged 65 or over in 1970 are compared. It is found that average real income of this cohort fell by 4 percent between 1970 and 1977.

Age Factors↗

Income change at retirement.

Less than one-fourth of SIPP retirees made the transition from full-time work and no benefit receipt to benefit receipt and no work during the 32 months of the 1984 SIPP panel, and these full retirees appear to differ economically from those who had not fully retired during the 32 months. Income declined to 60 percent of preretirement levels for those who received Social Security benefits and employer pensions, and to 46 percent for those who received only one type of benefit after ceasing full-time work. Family income cushioned the decline. About one-third of retirees had larger changes in income shortly before or after observed retirement transitions than right at the retirement transitions. Larger changes in income were associated with changing one's work effort. Asset income was quite variable across the entire panel. A monthly view of persons in various stages of retirement has brought into sharper focus than has previously been recognized the many paths into retirement, often over an extended period of time, during which status may change back and forth. A one-time or occasional extension of the SIPP to perhaps a 5-year period for the near-retirement-age population would increase the proportion of retirees for whom the full process is observed in such great detail. Alternatively, information on the timing of changes in labor-force and pension status may be collected in a proposed new Retirement History Study that calls for interviewing persons at 2-year intervals over a 10-year period for a more accurate picture of the retirement process.

Aged↗

Income changes at and after Social Security benefit receipt: evidence from the Retirement History Study.

This article details the changes in total income and the composition of its sources that occur upon initial receipt of Social Security benefits, and in the first 4 years thereafter. The study shows that, for many persons, "retirement" is a gradual process rather than an immediate cessation of all paid work. About half the persons entering the rolls continue at least some paid employment after benefit receipt. Even more do so if previous earnings were low or if they have no pension to supplement their benefits. In real terms, the average couple initially loses about one-third of its previous income, while nonmarried women, with less to begin with, lose somewhat less. In the time period studied, inflation was high in historical terms: the Consumer Price Index rose by approximately one-third in the 4-year period following benefit receipt. During that time, the real income of beneficiaries declined by about 10 percent from the levels immediately after benefit receipt. Fewer beneficiaries continued to work 4 years later, so earnings played a smaller role in total income. The real value of private pensions declined by about 20 percent in the 4-year period, but because most persons with such pensions had other, better-protected sources of income, their total income declined by less than 10 percent.

Aged↗

Income and living arrangements among poor aged singles.

It is generally agreed that income plays an important part in determining the living arrangements of unmarried old persons. Numerous studies of later life have concluded that large numbers of old persons live with their friends, adult children, and other relatives simply because they cannot afford to maintain separate homes of their own. The literature contains few references, however, to the effect of income change on the living arrangements of persons after they have become old and poor. This article focuses on the correlates of living arrangements among unmarried older welfare recipients in 1973, and then examines the effect of income change on living arrangements in 1974. Logit analysis identifies several patterns of household change associated with income increase and decrease but, overall, the capacity to care for oneself was the best predictor of living arrangement in 1974.

Adaptation, Psychological↗

A grouped data regression approach to estimating economic and social influences on individual drinking behaviour.

General Household Survey (GHS) data sets, covering the period 1978-1990, are pooled to investigate the relationship between the riskiness of individuals' self-reported drinking behaviour and a wide range of personal characteristics and economic factors. A grouped data regression approach is used to reduce problems with the inaccuracy of self-reports of alcohol consumption and clustering of observations in the consumption data. Results for males aged 18 to 24 years are presented, and possible methods for interpreting the results of grouped data regression are illustrated. Controlling for other factors, current smokers are estimated to be at a 75% higher risk of drinking over recommended levels than non-smokers. Particular attention is paid to the interactions between the price of alcohol, income and heavy drinking. At average levels of income, a 5% increase in the real price of alcohol is predicted to reduce the probability of 'at-risk' drinking by 1.5%. At lower initial levels of income, drinking patterns are found to be more responsive to both price and income changes. Grouped data regression is proposed as a way of focusing policy analysis on individual risks of alcohol-related health and social problems.

Adult↗

Concurrent self-administration of ethanol and an alternative nondrug reinforcer in monkeys: effects of income (session length) on demand for drug.

Eight rhesus monkeys (Macaca mulata) were trained to self-administer orally delivered ethanol (8%) and saccharin (0.03 or 0.3% wt/vol) or water under concurrent fixed-ratio (FR) schedules. The FR requirement for saccharin was fixed at 32, while the FR for ethanol was varied (4, 8, 16, 32, 64 and 128) in a non-systematic order to assess demand for drug. Demand was defined as consumption plotted as a function of price (FR). Income was defined as the duration of access to available resources. Income was varied by allowing access to the concurrently available liquids 20, 60 or 180 min per day. Order of testing was counter-balanced across monkeys. Saccharin deliveries were much higher than ethanol deliveries under the 180-min income condition; however, they were lower than ethanol deliveries when income was reduced to 20 min and the ethanol FR was 4, 8 or 16. Thus, when the price of drug was relatively low, consumption of drug exceeded that of the nondrug reinforcer, and that relationship was reversed as income decreased. Saccharin deliveries sustained a proportionally greater reduction due to decreased income compared to ethanol deliveries. As income decreased from 180 to 20 min, saccharin deliveries were reduced by an average of 79.1% (across ethanol FR conditions) while ethanol deliveries were reduced by an average of 41.2 and 40.8% when concurrent saccharin or water were available, respectively; thus, drug self-administration was more resistant to income changes than saccharin. The demand for ethanol was shifted downward in a parallel fashion as income decreased.(ABSTRACT TRUNCATED AT 250 WORDS)

Administration, Oral↗

The demand for dental health.

This study evaluates the determinants of demand for dental health in the context of an econometric model where dental health and dental care are jointly endogenous. The theoretical analysis is based on the application of economic theory to production activities occurring at the individual or household level. A number of hypotheses concerning the change in demand for home and market dental care with respect to price and income changes are posited and empirically tested. Additional hypotheses concerning the relation between dental care and dental health are also examined statistically while controlling for a variety of sociodemographic and economic factors. One of the key empirical findings is that the net price elasticity for dental services is quite low (-0.2) for this sample of individuals with high dental insurance coverage.

Dental Care↗

Mutual influences of health and poverty. Evidence from German panel data.

While a large body of literature is concerned with the interplay of health and poverty in developing countries, comparable studies for developed countries are rare. Using data drawn from the German Socio-Economic Panel (GSOEP), this paper investigates the relationships between changes in relative income poverty, income changes and health-related quality of life in Germany, i.e. in an environment with nominally equal access to medical care, education and social security. A fundamental five-dimensional health concept is introduced and tested for its empirical performance. The background of the causal analysis is formed by two hypotheses, one regarding low income as a possible cause for poor health (prevention hypothesis) and the other assuming the opposite causal direction (deprivation hypothesis). By means of a descriptive analysis and a structural equations model, the existence of a more complex relational web between health and poverty is demonstrated.

Germany↗

Nutritional disorders associated with affluence in Bahrain.

In this paper the nutritional disorders associated with affluence in Bahrain are reviewed and analysed. Heart diseases, obesity, diabetes mellitus, cancer, and dental caries are becoming the main public health problems in the country. The major aetiological factors leading to such a situation are change in lifestyle, high per capita income, change in food consumption patterns, and ineffective preventive measures. Programmes to control the disease of affluence should be given a high priority in any health plan. Emphasis should be placed on initiating intervention nutrition programmes, training health staff and carrying out epidemiological studies.

Adolescent↗

Life changes and perceptions of life and death among older men and women.

Although social scientists have suggested that feelings about life and death may be related, for the most part, theories of social gerontology have developed independently of conceptions of death and finitude. This study examines whether life changes are associated with concurrent life and death attitude types among older men and women. Data were analyzed from structured interviews conducted with 214 men and 354 women during the second phase of a longitudinal study of the aged in small towns. Individuals were identified as positivists, negativists, activists, and passivists. Controlling for sex and income, changes in four life areas were examined in relation to these perceptions of life and death. Some of the patterns varied by sex, suggesting that the same changes have different implications for the well-being of men and women in late life. In general, those who had experienced discontinuity were more frequently negativists or passivists, while continuity tended to characterize positivists and activists.

Aged↗

Alcohol policy--evaluating the options.

All policy interventions have costs and benefits and the 'harm' created by the use of alcohol can only be mitigated at a cost. The purpose of economic analysis is to measure these costs and benefits in an explicit way and to use these results to inform policy. Policy makers like to use estimates of the social costs of alcohol use but such data are of little use in identifying which interventions reduce harm at least cost: knowing alcohol use costs in local currencies $6 million in Australia, $5.8 billion in the USA, $5.7 billion in Canada and $2 billion in the UK may fuel political debate but does not identify the intervention where investment produces the greatest increase in benefit at least cost. Integrated policies to raise taxes in relation to price and income changes have significant impacts on alcohol consumption and, if complemented with advertising controls and limits on availability have even larger effects. The quantity and quality of economic evaluations of health care interventions is inadequate. What little evaluation that has been undertaken indicates that low cost minimal interventions may be cost effective for the wider population of problem drinkers. Other more intensive interventions are likely to be cost effective only if well targeted on appropriate client groups. There are many effective ways of reducing alcohol consumption. The industry will lose and oppose change but improvements in health and other aspects of life (eg civil order) will be significant.

Alcohol Drinking↗

Income dynamics and adult mortality in the United States, 1972 through 1989.

OBJECTIVES: The aim of this study was to examine relationships between income and mortality, focusing on the predictive utility of single-year and multiyear measures of income, the shape of the income gradient in mortality, trends in this gradient over time, the impact of income change on mortality, and the joint effects of income and age, race, and sex on mortality risk. METHODS: Data were taken from the Panel Study of Income Dynamics for the years 1968 through 1989. Fourteen 10-year panels were constructed in which predictors were measured over the first 5 years and vital status over the subsequent 5 years. The panels were pooled and logistic regression was used in the analysis. RESULTS: Income level was a strong predictor of mortality, especially for persons under the age of 65 years. Persistent low income was particularly consequential for mortality. Income instability was also important among middle-income individuals. Single-year and multiyear income measures had comparable predictive power. All effects persisted after adjustment for education and initial health status. CONCLUSIONS: The issues of low income and income instability should be addressed in population health policy.

Black or African American↗

Occupational stress and work satisfaction among Canadian women physicians.

The present study examined relationships among occupational stress, job satisfaction, and various individual characteristics and job-related variables in a population of 303 women physicians. Analysis showed that time pressures and threat of malpractice litigation were sources of stress and that over-all satisfaction was related to satisfaction with both professional and social aspects of the job. Low satisfaction was related to wanting higher income, changes in practice procedures, and several stressors, such as time pressures. Stress and satisfaction were also related to attitudes toward health care. Women who experienced high stress and low satisfaction were more likely to have negative views of the functioning of the health care system. In addition, demographic and practice variables contributed to negative attitudes.

Canada↗

A systems analysis approach for studying the effect of reproduction-enhancing biotechnologies on the genetic improvement of beef cattle.

A function is presented to which nonlinear programming techniques could be applied to quantify the potential of super-ovulation, embryo transfer, sexed semen, in vitro fertilization and in vitro maturation of oocytes used singularly or in combination to improve genetically beef cattle growth and(or) reproductive efficiency. The function to be maximized adds genetic gain times the sale price of the additional product brought about by the genetic selection program, and any income change due to change from the normal replacement rate of females, and subtracts the additional costs of the breeding program over a random breeding program. All this is expressed on a per-calf-sold basis to arrive at the economic return of the breeding program per calf raised to market age. The rate of increase in inbreeding can be restricted as desired. It is assumed that a progeny testing procedure is practiced for the selection of sires. The power of nonlinear programming to find maximums of functions with many variables and to measure how sensitive the genetic and economic returns are to various success rates for the biotechnologies mentioned above is discussed.

Animals↗

Health care reform: managed competition and beyond.

Since the election, the health care reform debate has focused on three broad features: implementation of managed competition, changes in the tax treatment of health insurance, and the imposition of budget caps or targets. The basic element of managed competition is the creation of sponsors who act as collective purchasing agents for large groups of individuals. One of the potentially most politically difficult issues in implementing any health care reform proposal is likely to be defining the minimum standard benefit package. It will determine the costs society bears, the income of providers, the health of many individuals, and the attributes of a workable health care reform package. Managed competition is intended to foster competition among health plans on the basis of cost and quality. The measures of quality actually employed in the health care system will determine in large part the incentives faced by insurers, providers, and consumers. The problem of adverse selection is potentially the most important issue in reforming the health insurance market. If individuals can opt not to purchase health benefits, poorer risks will be more likely to purchase health insurance than good risks, and at minimum the price of these benefits will be higher than would otherwise be the case. Managed competition requires that individuals share at least some of the financial consequences of their choices among health plans. As a result, most managed competition proposals change the tax code by limiting the exclusion of employer contributions to health insurance from worker's taxable income. Changing the health insurance market, mandating employer health benefits, and changing the tax code may have significant effects on the health care delivery system, but they are unlikely to reduce health care cost inflation in the near term. One of the proposals for restraining the growth in health care costs is the imposition of a budget on the amount spent on health care services. The combination of the constraints placed on federal governmental action by the budget and the significant political problems involved in reaching a consensus on the important elements of health care reform may limit the ability of the federal government to implement national health care reform in the near term. As a result, individual states may be encouraged by the federal government to continue to experiment with their own health reform programs.

Budgets↗

Physician incomes and work patterns across specialties: 1975 and 1983-84.

Survey data on physician income and work patterns are examined and compared for 1975 and 1983-84. Specialty, hours and weeks worked, location, practice size, and incorporation status are examined. Dollar figures for 1975 are adjusted to show real-dollar income changes over the period. Incomes for surgical specialties were highest. In real-dollar terms, nonsurgical specialties exhibited sluggish growth or even fell. Urban-rural differences in real income and hours worked narrowed over time. Incorporation and group affiliation were positively related to income levels in both surveys, but number of hours worked was not. Limitations and interpretation of these data are discussed last.

Data Collection↗