Dynamic profile of health investment and the evolution of elderly health

A considerable number of studies have sought to examine the determinants of elderly health. Nevertheless, few of them incorporate a life-course perspective to analyze the dynamics of transition for both health conditions and their predictors. We utilize a nationally representative longitudinal data set of 4007 Taiwanese aged 60 or over and employ discrete-time duration models to investigate the association between annual mortality and its potential risk factors over a nearly twenty-year period (1989-2007). We place particular emphasis on the inherently dynamic character of Grossman's model, and specifically on how public and private health investment shape the personal health outcome over time. Our results support the hypothesis that depreciation rates depend on personal characteristics. In addition, we find that the dynamic profiles of both public and private health investment significantly influence the elderly mortality. An important implication of our study is that implementing universal health insurance and tobacco control programs are effective channels through which the government improves personal health.