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A behavioral note on the demand for health

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  • Tavares, Aida Isabel

Abstract

On this note we introduce some behavioral hypothesis on the static version of Grossman model on the demand for health. Three behavioral hypotheses are considered in the static version of Grossman model: the status, the social pressure and trust. We show that a preference for status and for social approval result in a higher optimal choice for health. The same cannot be concluded when considering the influence of trust. The variable trust has an ambiguous result on the optimal health decision of individuals.

Suggested Citation

  • Tavares, Aida Isabel, 2007. "A behavioral note on the demand for health," MPRA Paper 37691, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37691
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    References listed on IDEAS

    as
    1. Kandel, Eugene & Lazear, Edward P, 1992. "Peer Pressure and Partnerships," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 801-817, August.
    2. Michael Grossman, 1999. "The Human Capital Model of the Demand for Health," NBER Working Papers 7078, National Bureau of Economic Research, Inc.
    3. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    4. Howarth, Richard B., 1996. "Status effects and environmental externalities," Ecological Economics, Elsevier, vol. 16(1), pages 25-34, January.
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    Cited by:

    1. Biswajit MANDAL & Saswati CHAUDHURI & Arindam MANDAL, 2021. "Health, health production and input financing: A theoretical note," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(626), S), pages 219-230, Spring.

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    More about this item

    Keywords

    health demand; Grossman model; behavioral factors;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • I10 - Health, Education, and Welfare - - Health - - - General

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