On adaptation and the demand for health

Authors:

Gjerde, Jon, Sverre Grepperud and Snorre Kverndokk

Year:

2005

Reference:

vol. 37, s. 1283-1301

Summary

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 smoothening 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

JEL:

C61; D91; I12

Keywords:

Grossman model; Demand for health; Adaptation; Life extension; Ageing.

Project:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.:
Frisch prosjekt: 4101 - Economics of health

Contact:

snorre.kverndokk@frisch.uio.no