A theory of health investment under competing mortality risks
AbstractIn this paper we present a theory of health investment when there are multiple causes of death. Since there are several risks âcompetingâ for one's life, the health investments in avoiding different causes of death are not independent in general. We analyze the optimal investment rules and the comparative statics. In particular, we search for the conditions that make such health investments normal goods, non-Giffen goods, gross complements to one another, and have a positive risk aversion effect. If the proposed conditions fail, then some health investments may become net substitutes, or even gross substitutes to one another.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Health Economics.
Volume (Year): 24 (2005)
Issue (Month): 3 (May)
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Web page: http://www.elsevier.com/locate/inca/505560
Other versions of this item:
- Fwu-Ranq Chang, 2002. "A Theory of Health Investment under Competing Mortality Risks," CESifo Working Paper Series 669, CESifo Group Munich.
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