On the Concept of Health Capital and the Demand for Health
@article{Grossman1972OnTC,
title={On the Concept of Health Capital and the Demand for Health},
author={Michael Grossman},
journal={Journal of Political Economy},
year={1972},
volume={80},
pages={223 - 255}
}The aim of this study is to construct a model of the demand for the commodity "good health." The central proposition of the model is that health can be viewed as a durable capital stock that produces an output of healthy time. It is assumed that individuals inherit an initial stock of health that depreciates with age and can be increased by investment. In this framework, the "shadow price" of health depends on many other variables besides the price of medical care. It is shown that the shadow…
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