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Private and Public Health Investment Decisions

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Listed:
  • Atolia, Manoj
  • Papageorgiou, Chris
  • Turnovsky, Stephen

Abstract

In recent years, there has been an explosive increase in the demand for health products and services by people all around the globe, and particularly in advanced economies. Aiming to enhance longevity but also improve quality of life, individual consumption of pharmaceutical products and services has risen exponentially since the early 1980s. This paper develops a model in which agents invest part of their resources in medical products and time in physical exercise to enhance their health status. In the first part of the paper, we study the steady state and transitional dynamics of the model with special emphasis on the effects of health decisions on aggregate outcomes. In the second part, we explore how public health policies may alter private economic decisions that promote healthier and more productive lives.

Suggested Citation

  • Atolia, Manoj & Papageorgiou, Chris & Turnovsky, Stephen, 2017. "Private and Public Health Investment Decisions," MPRA Paper 79842, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:79842
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    File URL: https://mpra.ub.uni-muenchen.de/79842/1/MPRA_paper_79842.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Private and public health investments; endogenous discounting of the rate of time preference; neoclassical growth model; health policy.;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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