slides3 - Grossman's Model Labor-Leisure Model How is...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Grossman’s Model Labor-Leisure Model How is health an investment? Demand for health and health care Angela Fertig Spring 2010 Angela Fertig Demand for health and health care
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Grossman’s Model Labor-Leisure Model How is health an investment? Grossman’s Model Based on human capital theory – people invest in education and health like a firm invests in capital equipment I People demand health for 2 reasons: I it increases productivity (work more, harder) – investment good (house) I it makes you feel better – consumption good (car) I 2 ways to get health: I spend time improving health I medical care I Education makes it easier to get health I Health depreciates over time Angela Fertig Demand for health and health care
Background image of page 2
Grossman’s Model Labor-Leisure Model How is health an investment? Plan I Learn labor-leisure model to show how health is an investment (today) I Learn Grossman model main equation to show how to choose optimal health (tomorrow) I Use Grossman model equation to discuss model predictions Angela Fertig Demand for health and health care
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

slides3 - Grossman's Model Labor-Leisure Model How is...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online