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Optimal choice on prevention and cure: a new economic analysis

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  • Mario Menegatti

Abstract

This paper studies choices on prevention and cure in a context where an agent bears a health risk. In this framework we first analyze interdependence between the optimal levels of prevention and cure. Second, we study the effects on optimal choices of a change in the cost of one of the two instruments and we examine substitutability between them. Finally we present findings about the effects of a change either in the seriousness of the possible disease or in the efficiency of the medical treatment. Copyright Springer-Verlag Berlin Heidelberg 2014

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  • Mario Menegatti, 2014. "Optimal choice on prevention and cure: a new economic analysis," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(4), pages 363-372, May.
    • Handle: RePEc:spr:eujhec:v:15:y:2014:i:4:p:363-372
    DOI: 10.1007/s10198-013-0479-y
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Peter, Richard, 2017. "Optimal self-protection in two periods: On the role of endogenous saving," Journal of Economic Behavior & Organization, Elsevier, vol. 137(C), pages 19-36.
    2. Pablo GARCIA SANCHEZ & Luca MARCHIORI & Olivier PIERRARD, 2024. "On Optimal Subsidies for Prevention and Long-Term Care," LIDAM Discussion Papers IRES 2024008, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    3. David Crainich, 2019. "Effet des préférences individuelles sur la réussite à long terme des incitations financières à la réalisation d’objectifs de santé," Revue d'économie politique, Dalloz, vol. 129(4), pages 447-465.
    4. Richard Peter, 2021. "Who should exert more effort? Risk aversion, downside risk aversion and optimal prevention," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(4), pages 1259-1281, June.
    5. Annette Hofmann & Richard Peter, 2016. "Self-Insurance, Self-Protection, and Saving: On Consumption Smoothing and Risk Management," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 83(3), pages 719-734, September.
    6. David Crainich & Louis Eeckhoudt & Mario Menegatti, 2019. "Vaccination as a trade-off between risks," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 5(3), pages 455-472, October.
    7. Desu Liu & Mario Menegatti, 2019. "Optimal saving and health prevention," Journal of Economics, Springer, vol. 128(2), pages 177-191, October.
    8. Crainich, David & Menegatti, Mario, 2021. "Self-protection with random costs," Insurance: Mathematics and Economics, Elsevier, vol. 98(C), pages 63-67.
    9. Mario Menegatti, 2018. "Prudence and Different Kinds of Prevention," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(2), pages 273-285, April.
    10. Pablo Garcia Sanchez & Luca Marchiori & Olivier Pierrard, 2024. "Healthy aging and capital accumulation," BCL working papers 189, Central Bank of Luxembourg.
    11. Jimin Hong & Kyungsun Kim, 2021. "Self-insurance and saving under a two-argument utility framework," Journal of Economics, Springer, vol. 134(1), pages 73-94, September.
    12. Mario Menegatti, 2021. "Subsidizing risk prevention," Journal of Economics, Springer, vol. 134(2), pages 175-193, October.
    13. Richard Peter, 2021. "A fresh look at primary prevention for health risks," Health Economics, John Wiley & Sons, Ltd., vol. 30(5), pages 1247-1254, May.
    14. Christophe Courbage & Henri Loubergé & Richard Peter, 2017. "Optimal Prevention for Multiple Risks," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 84(3), pages 899-922, September.
    15. P. Battiston & M. Menegatti, 2022. "Interaction in Prevention: A General Theory and an Application to COVID-19 Pandemic," Economics Department Working Papers 2022-EP02, Department of Economics, Parma University (Italy).
    16. Brianti, Marco & Magnani, Marco & Menegatti, Mario, 2018. "Optimal choice of prevention and cure under uncertainty on disease effect and cure effectiveness," Research in Economics, Elsevier, vol. 72(2), pages 327-342.

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    More about this item

    Keywords

    Prevention; Cure; Health risk; Two-argument utility; I10; D81;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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