Browsing Working papers by Subject "health capital"
Now showing items 1-2 of 2
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Consumption and Investment Demand when Health Evolves Stochastically
(2017-10)The health capital model of Grossman (1972) is extended to account for uncertainty in the rate at which a stock of health depreciates. Two versions of the model are contemplated, one with a fully functioning financial ... -
Optimal Investment in Health when Lifetime is Stochastic, or, Rational Agents do not Often Follow Health Agency Recommendations
(2018-08)A health-capital model is contemplated which accounts for the consumption of many goods, a stock of health and investment in it, as well as an agent’s random lifetime and accumulation of wealth. It is shown that if an ...