Serum androgen levels decline with age in women, a decline already demonstrable prior to menopause. Oestrogen administration is associated with a decrease in bioavailable testosterone. Testosterone administration can lead to increases in a number of parameters of sexuality, probably by direct neural effects. Androgens also have anabolic effects on bone, and do not adversely affect lipids, especially when given parenterally.
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Davis et al. (1997) studied this question.