Midterm - Kyle Schuppan Health Economics Written Portion of...

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Kyle Schuppan Health Economics Written Portion of Midterm 3/11/11 1.) a.) The two main elements of the Grossman Model are “Time budget constraints” and “Goods budget constraints”. Time budget constraints are things like time spent on health (gym, diet), time on consumption of health products, time spent on work, and time spent sick. Goods budget constraints are characterized as price of goods, amount of medical care, and overall other goods. b.) The two variables for the Grossman model that social capital might operate through are “consumption goods” and “investment goods”. Social capital can operate through consumption goods and increase health stock by making networks and friends that can help you stay healthy. A good example of this is weight loss programs that offer classes and clinics. Social capital can also operate through investment goods by allowing workers to stay healthy and provide more for a company and thus society. c.) If one were to add social capital to the model, you get more utility from health.
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This note was uploaded on 04/25/2011 for the course MARKETING 300 taught by Professor Romyerong during the Spring '11 term at Saint Louis.

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Midterm - Kyle Schuppan Health Economics Written Portion of...

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