On adaptation and the demand for health
The purpose of this paper is to analyse the impacts of adaptation to failing health. This is done by integrating adaptation processes in a Grossman type of pure consumption model. Model simulations show that adaptation affects the health variables by lowering the incentives to invest in health, as well as smoothening the optimal health stock path over the life cycle. Whether or not the risk of mortality is an object of choice has important effects when studying adaptation, as well as for the joint development of the health variables
Gjerde, Jon, Sverre Grepperud and Snorre Kverndokk
C61; D91; I12
Grossman model; Demand for health; Adaptation; Life extension; Ageing.
Prosjekt:4101 - Økonomi og helse