HEALTH INVESTMENT OVER THE LIFE-CYCLE

• Published in: Macroeconomic dynamics Vol. 23; no. 1; pp. 178 - 215
• Main Authors: Halliday, Timothy J, He, Hui, Lei Ning, Zhang, Hao
• Format: Journal Article
• Language: English
• Published: Cambridge Cambridge University Press 01.01.2019
• Subjects: Economic models; Economic theory; Expenditures; Macroeconomics

We quantify what drives the rise in medical expenditures over the life-cycle using a stochastic dynamic overlapping generations model of health investment. Three motives for health investment are considered. First, health delivers a flow of utility each period (the consumption motive). Second, bette...