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Theoretical and Applied Economics
No. 1 / 2016 (606), Spring

A utility based theoretical model for the income-life expectancy curve

Kaan ÖĞÜT
Bahcesehir University, Besiktas, Istanbul, Turkey
Çağlar YURTSEVEN
Bahcesehir University, Besiktas, Istanbul, Turkey

Abstract. The relationship between income and life expectancy is an established empirical fact, commonly represented by the Preston curve. Although this empirical relationship has been common knowledge for a very long time, there is no theoretical model that explicates the exact dynamic of it. The present paper fills this void by developing a utility based model which successfully estimates the Preston curve.

Keywords: life expectancy, Preston curve, utility model, logistic function, simulation.

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The Economicity. The Epistemic Landscape, Marin Dinu, 2016

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