Abstract
This paper investigates the role of biased health perceptions as a potential driving force of risky health behaviors. We define absolute and relative health perception biases, illustrate their measurement in surveys and provide evidence on their relevance. Next, we decompose the theoretical effect into its extensive and intensive margin: When the extensive margin dominates, people (wrongly) believe they are healthy enough to “afford” unhealthy behavior. Finally, using three population surveys, we provide robust empirical evidence that respondents who overestimate their health are less likely to exercise and sleep enough, but more likely to eat unhealthily and drink alcohol daily.
Original language | English |
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Article number | 102425 |
Number of pages | 26 |
Journal | Journal of Health Economics |
Volume | 76 |
Early online date | 22 Jan 2021 |
DOIs | |
Publication status | Published - 1 Mar 2021 |
Structured keywords
- ECON CEPS Health
- ECON Applied Economics
Keywords
- Health bias
- Health perceptions
- Subjective beliefs
- Overconfidence
- Overoptimism
- Risky behaviour
- Smoking
- Obesity
- Exercising
- SF12
- SAH
- BASE-II
- SOEP-IP