On the Concept of Health Capital and the Demand for Health

  title={On the Concept of Health Capital and the Demand for Health},
  author={Michael Grossman},
  journal={Journal of Political Economy},
  pages={223 - 255}
  • M. Grossman
  • Published 1 March 1972
  • Medicine, Economics
  • 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… 

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It is shown that the shadow price rises with age if the rate of depreciation on the stock of health rises over the life cycle and falls with education if more educated people are more efficient producers of health.

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  • 1998
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.

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  • Medicine, Political Science
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  • 2015
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.

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  • 2006

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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 the

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  • S. Mushkin
  • 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 first

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The contribution of health services to the American economy.

  • V. Fuchs
  • Philosophy
    The Milbank Memorial Fund quarterly
  • 1966
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.

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  • K. Lancaster
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  • 1966
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 goods

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