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On adaptation and the demand for health


  • Jon Gjerde
  • Sverre Grepperud
  • Snorre Kverndokk


The purpose of this paper is to analyse the impacts of adaptation to failing health. This is done by integrating adaptation processes in a Grossman type of pure consumption model. Model simulations show that adaptation affects the health variables by lowering the incentives to invest in health, as well as smoothing the optimal health stock path over the life cycle. Whether or not the risk of mortality is an object of choice has important effects when studying adaptation, as well as for the joint development of the health variables.

Suggested Citation

  • Jon Gjerde & Sverre Grepperud & Snorre Kverndokk, 2005. "On adaptation and the demand for health," Applied Economics, Taylor & Francis Journals, vol. 37(11), pages 1283-1301.
  • Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1283-1301
    DOI: 10.1080/00036840500118663

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    References listed on IDEAS

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    Cited by:

    1. Schünemann, Johannes & Strulik, Holger & Trimborn, Timo, 2017. "Going from bad to worse: Adaptation to poor health health spending, longevity, and the value of life," Journal of Economic Behavior & Organization, Elsevier, vol. 140(C), pages 130-146.
    2. Jared C. Carbone & Snorre Kverndokk, 2017. "Individual Investments in Education and Health: Policy Responses and Interactions," Advances in Health Economics and Health Services Research,in: Human Capital and Health Behavior, volume 25, pages 33-83 Emerald Publishing Ltd.
    3. Octave Jokung & Serge Macé, 2013. "Long-term health investment when people underestimate their adaptation to old age-related health problems," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(6), pages 1003-1013, December.
    4. Carbone, Jared C. & Kverndokk, Snorre, 2014. "Individual investments in education and health," HERO On line Working Paper Series 2014:1, Oslo University, Health Economics Research Programme.

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