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A behavioral note on the demand for health

Author

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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
    as

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    File URL: https://mpra.ub.uni-muenchen.de/37691/1/MPRA_paper_37691.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Howarth, Richard B., 1996. "Status effects and environmental externalities," Ecological Economics, Elsevier, vol. 16(1), pages 25-34, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    health demand; Grossman model; behavioral factors;

    JEL classification:

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

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