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Smoking and Health Investments: Impacts of Health Adaptation and Damage Reversibility

Sammendrag

In the present paper we examine how different sets of beliefs about the health effects of smoking would influence a rational smoker. By embedding the rational addiction theory in a Grossman model of health investment modified to take account of psychological adaptation effects, we present a model of a rational addict that allows us to explicitly specify beliefs about a direct and indirect effect on both death risk and utility. This allows us to study how a rational addict would smoke with different beliefs of cancer risks, and with or without the well-documented ability to adapt to health changes. Numerical simulation results illustrate a number of different incentives that influence the smoking paths and health investments under the various beliefs, and suggests that beliefs have different impacts at different ages, providing a richer set of dynamics than might initially be expected.

Om publikasjonen

Forfattere:

Carbone, J., S. Kverndokk og O. J. Røgeberg

År:

2003

Serie:

HERO Skrifter
Nummer i serie: 12

JEL:

C61; D91; I12

Nøkkelord:

Rational addiction; Demand for health; Adaptation; Risk; Life extension

Prosjekt:

4101 - Økonomi og helse

ISBN:

82-7756-116-4

Kontakt:

snorre.kverndokk@frisch.uio.no

Finansiering:

Norwegian Research Council

Lenke:

[PDF]