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Moran, John R.; Simon, Kosali Ilayperuma – Journal of Human Resources, 2006
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. Using data from the 1993 Wave of the AHEAD, we obtain instrumental variables estimates of the income elasticity of prescription drug use that are…
Descriptors: Older Adults, Drug Use, Computation, Income