Externalities in a life cycle model with endogenous survival

► We model life cycle decisions on health and consumption with endogenous survival. ► Externality: survival depends on own demand for health care and that of others. ► Compare allocations for individual life cycle vs. age-structured control model. ► Individual vs. social value of life, including current and future impact of externality. ► Characterise life cycle inefficiency and an internalising age-specific transfer.