Subjective Mortality Hazard Shocks and the Adjustment of Consumption Expenditures

Aniko Biro

Research output: Contribution to journalArticlepeer-review


I estimate the effect of shocks to subjective mortality hazards on consumption expenditures of retired individuals using the Survey of Health, Ageing and Retirement in Europe. I measure mortality expectations with survey responses on survival probabilities. To create plausibly exogenous variation in mortality hazard, I use the death of a sibling as an instrument. My results show that survey responses contain economically relevant information about longevity expectations and confirm the predictions of life-cycle theories about the effect of these expectations on intertemporal choice.
Original languageEnglish
Pages (from-to)1379-1408
Number of pages30
JournalJournal of Population Economics
Issue number4
Early online date18 Dec 2012
Publication statusPublished - Oct 2013


  • consumption decisions
  • subjective longevity
  • IV estimation
  • C26
  • D81
  • D91

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