Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Double Facetted Nature of Health Investments - Implications for Equilibrium and Stability in a Demand-for-Health Framework

Contents:

Author Info

  • Kristian Bolin
  • Bjorn Lindgren
Registered author(s):

    Abstract

    A number of behaviours influence health in a non-monotonic way. Physical activity and alcohol consumption, for instance, may be beneficial to one’s health in moderate but detrimental in large quantities. We develop a demand-for-health framework that incorporates the feature of a physiologically optimal level. An individual may still choose a physiologically non-optimal level, because of the trade-off in his or her preferences for health versus other utility-affecting commodities. However, any deviation from the physiologically optimal level will be punished with respect to health. A set of steady-state comparative statics is derived regarding the effects on the demand for health and health-related behaviour, indicating that individuals react differently to exogenous changes, depending on the amount of the health-related behaviour they demand. We also show (a) that a steady-state equilibrium is a saddle-point and (b) that the physiologically optimal level may be a steady-state equilibrium for the individual. Our analysis suggests that general public-health policies may, to some extent, be counterproductive due to the responses induced in part of the population.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.nber.org/papers/w17789.pdf
    Download Restriction: Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17789.

    as in new window
    Length:
    Date of creation: Jan 2012
    Date of revision:
    Handle: RePEc:nbr:nberwo:17789

    Note: HE
    Contact details of provider:
    Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
    Email:
    Web page: http://www.nber.org
    More information through EDIRC

    Related research

    Keywords:

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Yang-Ming Chang & Dennis L. Weisman, 2005. "Sibling Rivalry and Strategic Parental Transfers," Southern Economic Journal, Southern Economic Association, Southern Economic Association, vol. 71(4), pages 821-836, April.
    2. Ehrlich, Isaac, 2000. "Uncertain lifetime, life protection, and the value of life saving," Journal of Health Economics, Elsevier, Elsevier, vol. 19(3), pages 341-367, May.
    3. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
    4. Muurinen, Jaana-Marja, 1982. "Demand for health: A generalised Grossman model," Journal of Health Economics, Elsevier, Elsevier, vol. 1(1), pages 5-28, May.
    5. Yang-Ming Chang, 2009. "Strategic altruistic transfers and rent seeking within the family," Journal of Population Economics, Springer, Springer, vol. 22(4), pages 1081-1098, October.
    6. Kenkel, D.S., 1988. "Health Behavior, Health Knowledge, And Schooling," Papers, Pennsylvania State - Department of Economics 10-88-3, Pennsylvania State - Department of Economics.
    7. Bolin, Kristian & Jacobson, Lena & Lindgren, Bjorn, 2002. "Employer investments in employee health: Implications for the family as health producer," Journal of Health Economics, Elsevier, Elsevier, vol. 21(4), pages 563-583, July.
    8. Konrad, Kai A & Lommerud, Kjell Erik, 1996. "The Bargaining Family Revisited," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1312, C.E.P.R. Discussion Papers.
    9. Bolin, Kristian & Jacobson, Lena & Lindgren, Bjorn, 2001. "The family as the health producer -- when spouses are Nash-bargainers," Journal of Health Economics, Elsevier, Elsevier, vol. 20(3), pages 349-362, May.
    10. Forster, Martin, 2001. "The meaning of death: some simulations of a model of healthy and unhealthy consumption," Journal of Health Economics, Elsevier, Elsevier, vol. 20(4), pages 613-638, July.
    11. Ehrlich, Isaac, 2001. "Erratum to "Uncertain lifetime, life protection, and the value of life saving": [Journal of Health Economics 19 (2000) 341-367]," Journal of Health Economics, Elsevier, Elsevier, vol. 20(3), pages 459-460, May.
    12. Liljas, Bengt, 1998. "The demand for health with uncertainty and insurance," Journal of Health Economics, Elsevier, Elsevier, vol. 17(2), pages 153-170, April.
    13. Valentino Dardanoni & Alan Wagstaff, 1987. "Uncertainty and the demand for medical care," Working Papers, Centre for Health Economics, University of York 028chedp, Centre for Health Economics, University of York.
    14. Dardanoni, Valentino & Wagstaff, Adam, 1987. "Uncertainty, inequalities in health and the demand for health," Journal of Health Economics, Elsevier, Elsevier, vol. 6(4), pages 283-290, December.
    15. Chang, Fwu-Ranq, 1996. "Uncertainty and investment in health," Journal of Health Economics, Elsevier, Elsevier, vol. 15(3), pages 369-376, June.
    16. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, National Bureau of Economic Research, Inc, number gros72-1.
    17. Bolin, Kristian & Lindgren, Björn & Lindström, Martin & Nystedt, Paul, 2003. "Investments in social capital--implications of social interactions for the production of health," Social Science & Medicine, Elsevier, Elsevier, vol. 56(12), pages 2379-2390, June.
    18. Liljas, Bengt, 2000. "Insurance and imperfect financial markets in Grossman's demand for health model -- a reply to Tabata and Ohkusa," Journal of Health Economics, Elsevier, Elsevier, vol. 19(5), pages 821-827, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Bolin, Kristian & Liljas, Bengt & Lindgren, Björn, 2014. "Individual technologies for health - the implications of distinguishing between the ability to produce health investments and the capacity to benefit from those investments," Working Papers in Economics, University of Gothenburg, Department of Economics 587, University of Gothenburg, Department of Economics.
    2. Peter Zweifel, 2012. "The Grossman model after 40 years," The European Journal of Health Economics, Springer, Springer, vol. 13(6), pages 677-682, December.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:17789. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.