Living Arrangement: How does it relate to the Health of the Elderly in India?

India has the second largest population of elderly people after China. The living arrangement of the elderly is seen as a parameter of great importance in understanding their plight in developing countries because of the lack of public institutions and social security nets. Using the India Human Development Survey–2005 (IHDS), the paper examines whether the living arrangements of the elderly have any bearing on the status of their health or the amount spent on treatment when sick. Furthermore, for a limited sample we also test an intermediary variable – a household decision making index - that we believe informs us of the functioning of the family and should have a relationship with health outcomes like seeking treatment and how much is spent.