A Contribution to Health Capital Theory
This paper presents a theory of the demand for health, health investment and longevity, building on the human capital framework for health and addressing limitations of existing models. It predicts a negative correlation between health investment and health, that the health of wealthy and educated individuals declines more slowly and that they live longer, that current health status is a function of the initial level of health and the histories of prior health investments made, that health investment rapidly increases near the end of life and that length of life is finite as a result of limited life-time resources (the budget constraint). It derives a structural relation between health and health investment (e.g., medical care) that is suitable for empirical testing.
|Date of creation:||Jan 2011|
|Date of revision:|
|Contact details of provider:|| Postal: 1776 Main Street, P.O. Box 2138, Santa Monica, California 90407-2138|
Web page: http://www.rand.org/pubs/
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 & Arie Kapteyn, 2009.
"Grossman's Missing Health Threshold,"
684, RAND Corporation Publications Department.
- (*), Nigel Rice & Paul Contoyannis, 2001. "The impact of health on wages: Evidence from the British Household Panel Survey," Empirical Economics, Springer, vol. 26(4), pages 599-622.
- Donna B. Gilleskie, 1998. "A Dynamic Stochastic Model of Medical Care Use and Work Absence," Econometrica, Econometric Society, vol. 66(1), pages 1-46, January.
- Isaac Ehrlich & Yong Yin, 2004.
"Explaining Diversities in Age-Specific Life Expectancies and Values of Life Saving: A Numerical Analysis,"
NBER Working Papers
10759, National Bureau of Economic Research, Inc.
- Isaac Ehrlich & Yong Yin, 2005. "Explaining Diversities in Age-Specific Life Expectancies and Values of Life Saving: A Numerical Analysis," Journal of Risk and Uncertainty, Springer, vol. 31(2), pages 129-162, September.
- John Karl Scholz & Ananth Seshadri, 2012. "The Interplay of Wealth, Retirement Decisions, Policy and Economic Shocks," Working Papers wp271, University of Michigan, Michigan Retirement Research Center.
- Titus Galama & Arie Kapteyn & Raquel Fonseca & Pierre‐Carl Michaud, 2013. "A Health Production Model With Endogenous Retirement," Health Economics, John Wiley & Sons, Ltd., vol. 22(8), pages 883-902, 08.
- Strulik, Holger, 2014.
"A closed-form solution for the health capital model,"
Center for European, Governance and Economic Development Research Discussion Papers
222, University of Goettingen, Department of Economics.
- Holger STRULIK, 2015. "A Closed-form Solution for the Health Capital Model," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 81(3), pages 301-316, September.
- repec:cup:cbooks:9780521603683 is not listed on IDEAS
- Gerdtham, Ulf-G & Johannesson, Magnus, 1997.
"New Estimates of the Demand for Health: Results Based on a Categorical Health Measure and Swedish Micro Data,"
SSE/EFI Working Paper Series in Economics and Finance
205, Stockholm School of Economics.
- Gerdtham, Ulf-G. & Johannesson, Magnus, 1999. "New estimates of the demand for health: results based on a categorical health measure and Swedish micro data," Social Science & Medicine, Elsevier, vol. 49(10), pages 1325-1332, November.
- 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.
- Raquel Fonseca & Pierre-Carl Michaud & Arie Kapteyn & Titus Galama, 2013.
"Accounting for the Rise of Health Spending and Longevity,"
Cahiers de recherche
- Fonseca, Raquel & Michaud, Pierre-Carl & Kapteyn, Arie & Galama, Titus, 2013. "Accounting for the Rise of Health Spending and Longevity," IZA Discussion Papers 7622, Institute for the Study of Labor (IZA).
- Ehrlich, Isaac & Chuma, Hiroyuki, 1990. "A Model of the Demand for Longevity and the Value of Life Extension," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 761-82, August.
- Khwaja, Ahmed, 2010. "Estimating willingness to pay for medicare using a dynamic life-cycle model of demand for health insurance," Journal of Econometrics, Elsevier, vol. 156(1), pages 130-147, May.
- Caputo,Michael R., 2005. "Foundations of Dynamic Economic Analysis," Cambridge Books, Cambridge University Press, number 9780521842723, 1.
- Julien Hugonnier & Florian Pelgrin & Pascal St-Amour, 2009. "Health and (other) Asset Holdings," Swiss Finance Institute Research Paper Series 09-18, Swiss Finance Institute.
- Robert Kaestner, 2013. "The Grossman model after 40 years: a reply to Peter Zweifel," The European Journal of Health Economics, Springer, vol. 14(2), pages 357-360, April.
When requesting a correction, please mention this item's handle: RePEc:ran:wpaper:831. 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: (Benson Wong)
If references are entirely missing, you can add them using this form.