Individual technologies for health - the implications of distinguishing between the ability to produce health investments and the capacity to benefit from those investments
People differ in their ability to produce health investments and in their capacity to benefit from such efforts. In this paper, we assume (1) that the individual’s health-investment production function exhibits diminishing returns to scale and (2) that the individual’s capacity to benefit from the investments is diminishing in the stock of health. Previous research has only shown the importance of the first assumption for the health-capital adjustment process. The simultaneous effects go well beyond those results, however. Thus, this paper provides an extended demand-for-health framework that distinguishes between individuals both by their capacities to benefit and by their abilities to produce,when transforming health efforts into health increments. The potential usefulness of this framework for health-policy purposes is demonstrated by solving a numerically specified version of the model, and computing individual welfare effects of medical-care goods changes.
|Date of creation:||Mar 2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
More information through EDIRC
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.:
- Titus J. Galama & Patrick Hullegie & Erik Meijer & Sarah Outcault, 2012.
"Is There Empirical Evidence For Decreasing Returns To Scale In A Health Capital Model?,"
John Wiley & Sons, Ltd., vol. 21(9), pages 1080-1100, 09.
- Galama, T.; & Hullegie, P.; & Meijer, E.; & Outcault, S.;, 2012. "Empirical evidence for decreasing returns to scale in a health capital model," Health, Econometrics and Data Group (HEDG) Working Papers 12/05, HEDG, c/o Department of Economics, University of York.
- Kenneth L. Judd, 1998. "Numerical Methods in Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262100711, June.
- Chang, Fwu-Ranq, 1996. "Uncertainty and investment in health," Journal of Health Economics, Elsevier, vol. 15(3), pages 369-376, June.
- Titus J. Galama & Arie Kapteyn, 2009.
"Grossman's Missing Health Threshold,"
684, RAND Corporation Publications Department.
- Kenkel, Donald S, 1991.
"Health Behavior, Health Knowledge, and Schooling,"
Journal of Political Economy,
University of Chicago Press, vol. 99(2), pages 287-305, April.
- Kristian Bolin & Bjorn Lindgren, 2012. "The Double Facetted Nature of Health Investments - Implications for Equilibrium and Stability in a Demand-for-Health Framework," NBER Working Papers 17789, National Bureau of Economic Research, Inc.
- repec:cup:cbooks:9780521603683 is not listed on IDEAS
- repec:cup:cbooks:9780521842723 is not listed on IDEAS
- Selden, Thomas M., 1993. "Uncertainty and health care spending by the poor: The health capital model revisited," Journal of Health Economics, Elsevier, vol. 12(1), pages 109-115, April.
- Valentino Dardanoni & Alan Wagstaff, 1987.
"Uncertainty and the demand for medical care,"
028chedp, Centre for Health Economics, University of York.
- Wagstaff, Adam, 1986. "The demand for health : Some new empirical evidence," Journal of Health Economics, Elsevier, vol. 5(3), pages 195-233, September.
- Dardanoni, Valentino & Wagstaff, Adam, 1987. "Uncertainty, inequalities in health and the demand for health," Journal of Health Economics, Elsevier, vol. 6(4), pages 283-290, December.
- Bolin, Kristian & Jacobson, Lena & Lindgren, Bjorn, 2002. "Employer investments in employee health: Implications for the family as health producer," Journal of Health Economics, Elsevier, vol. 21(4), pages 563-583, July.
- Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1.
- Titus Galama, 2011. "A Contribution to Health Capital Theory," Working Papers 831, RAND Corporation Publications Department.
- 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, vol. 19(5), pages 821-827, September.
- Liljas, Bengt, 1998. "The demand for health with uncertainty and insurance," Journal of Health Economics, Elsevier, vol. 17(2), pages 153-170, April.
- 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 223-55, March-Apr.
- Muurinen, Jaana-Marja, 1982. "Demand for health: A generalised Grossman model," Journal of Health Economics, Elsevier, vol. 1(1), pages 5-28, May.
- Forster, Martin, 2001. "The meaning of death: some simulations of a model of healthy and unhealthy consumption," Journal of Health Economics, Elsevier, vol. 20(4), pages 613-638, July.
- Ried, Walter, 1998. "Comparative dynamic analysis of the full Grossman model," Journal of Health Economics, Elsevier, vol. 17(4), pages 383-425, August.
When requesting a correction, please mention this item's handle: RePEc:hhs:gunwpe:0587. 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: (Marie Andersson)
If references are entirely missing, you can add them using this form.