Journal
ECONOMIC JOURNAL
Volume 129, Issue 617, Pages 338-374Publisher
OXFORD UNIV PRESS
DOI: 10.1111/ecoj.12577
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Funding
- National Institute on Aging of the National Institutes of Health [K02AG042452, R01AG037398, R01AG030824, RF1AG055654, P30AG012815, P01AG022481]
- Netspar (Health and Income, Work and Care across the Life cycle II)
- Netherlands Organization of Scientific Research (NWO Veni grant) [016.145.082]
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Motivated by the observation that medical care explains only a relatively small part of the sock)economic status (SES)-health gradient, we present a life-cycle model that incorporates several additional behaviours that potentially explain (jointly) a large part of observed disparities. As a result, the model provides not only a conceptual framework for the SES-health gradient but more generally an improved framework for the production of health. We derive novel predictions from the theory by performing comparative dynamic analyses. More generally, our comparative dynamic method can be applied to models of similar form, e.g. human capital, health deficits, firm investment, to name a few.
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