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}
}
  • M. Grossman
  • Published 1 March 1972
  • Journal of Political Economy
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… Expand
The Human Capital Model of the Demand for Health
This paper contains a detailed treatment of the human capital model of the demand for health. Theoretical predictions are discussed, and theoretical extensions are reviewed. Empirical research thatExpand
The demand for health: an empirical test of the Grossman model using panel data.
TLDR
Individual time series information not only on the utilization of medical services but also on income, wealth, work, and life style is contained, which holds the promise of permitting the Grossman model to be adequately tested for the first time. Expand
The Human Capital Model
This chapter contains a detailed treatment of the human capital model of the demand for health which was originally developed in 1972. Theoretical predictions are discussed, and theoreticalExpand
AN EMPIRICAL TEST OF THE GROSSMAN MODEL USING PANEL DATA
Grossman derives the demand for health from an optimal control model in which health capital is both a consumption and an investment good. In his approach, the individual chooses his level of healthExpand
A Critique of Grossman’s Canonical Model of Health Capital
  • A. Sepehri
  • Economics, Medicine
  • International journal of health services : planning, administration, evaluation
  • 2015
TLDR
Underlying Grossman’s model are a faulty conceptual framework and assumptions that tend to exaggerate the degree of control consumers/patients may have over their state of health and survival. Expand
Health capital and regional development. A panel data approach
The recent studies of economic growth have shown increasing interest in the potential economic profits that improved health condition of populations could bring. The World Health Organization’sExpand
Health and the household
We underscore the close link between the economics of the household and health economics in a framework in which consumers produce their fundamental objects of choice. Health is produced with inputsExpand
On the dynamics of health capital accumulation.
  • R. McCarthy
  • Economics, Medicine
  • Social science & medicine
  • 2006
TLDR
It is found that higher variance of previous health capital increases leads to higher "good health" needed before health regimes are undertaken permanently, and the higher the target amount of health capital the lower the health capital "trigger" level for instigating the regime. Expand
The Dynamics of Health
Health has long been considered as a fundamental commodity in economic analyses; Michael Grossman (2000) cites Bentham as recognizing that the ‘relief of pain’ is one of the basic arguments in theExpand
US Health and Aggregate Fluctuations
This paper aims to shed light on the importance of health considerations for business cycle uctuations and the effect of health status on labor productivity and availability of labor input forExpand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 36 REFERENCES
Health as an Investment
  • S. Mushkin
  • Business, Economics
  • Journal of Political Economy
  • 1962
A THEORY of human capital is in the process of formulation. The primary question is "What is the contribution of changes in the quality of people to economic growth?" The academic economists firstExpand
The Production of Health, an Exploratory Study
TLDR
The relationship of mortality of whites to both medical care and environmental variables is examined in a regression analysis across states in 1960 and the positive association of mortality with income may explain the failure of death rates to decline rapidly in recent years. Expand
The Production of Human Capital and the Life Cycle of Earnings
T HE application of capital theory to decisions on individual improvement, and in particular improvement of earning capacity, has provided a framework for the understanding of many aspects ofExpand
OPTIMAL CAPITAL POLICY WITH IRREVERSIBLE INVESTMENT
Abstract : The paper analyzes investment policy for a firm which cannot disinvest faster than its capital depreciates. The model discussed assumes that there is a single capital good and that theExpand
The contribution of health services to the American economy.
  • V. Fuchs
  • Political Science, Medicine
  • The Milbank Memorial Fund quarterly
  • 1966
TLDR
The desire to live, to be well, to maintain full command over one's faculties and to see one's loved ones free from disease, disability or premature death are among the most strongly rooted of all human desires. Expand
A New Approach to Consumer Theory
m TIHE theory of consumer behavior in deterministic situations as set out by, say, Debreu (1959, 1960) or Uzawa (1960) is a thing of great aesthetic beauty, a jewel set in a glass case. The productExpand
A New Approach to Consumer Theory
Activity analysis is extended into consumption theory. It is assumed that goods possess, or give rise to, multiple characteristics in fixed proportions and that it is these characteristics, not goodsExpand
Myopia and Inconsistency in Dynamic Utility Maximization
This paper presents a problem which I believe has not heretofore been analysed2 and provides a theory to explain, under different circumstances, three related phenomena: (1) spendthriftiness; (2) theExpand
OPTIMAL ADVERTISING POLICY UNDER DYNAMIC CONDITIONS
The Dorfman-Steiner model [#53] is extended to coyer the situation in which present advertising expenditures affect the future demand for the product.
...
1
2
3
4
...