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On the demand for preventive care

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  • Meier, Volker

Abstract

This paper analyzes the demand for preventive care in an optimal control model in which utility is not contingent on the state of health and preventive measures are taken against future costs of curative care. It turns out that the demand for preventive care depends negatively on its price, and positively on the price of curative care and on the life-span. The influence of the depreciation rate on health capital is ambiguous. While the sign of the income elasticity cannot be determined in general, it may be positive if income is negatively correlated with the rate of time preference.

Suggested Citation

  • Meier, Volker, 2000. "On the demand for preventive care," Munich Reprints in Economics 19191, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:19191
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    Cited by:

    1. David A. Hennessy, 2008. "Prevention and cure efforts both substitute and complement," Health Economics, John Wiley & Sons, Ltd., vol. 17(4), pages 503-511, April.
    2. Plisson, Manuel, 2009. "Assurabilité et développement de l'assurance dépendance," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/5064 edited by Lorenzi, Jean-Hervé.
    3. Strulik, Holger, 2015. "A Closed-Form Solution For The Health Capital Model," Journal of Demographic Economics, Cambridge University Press, vol. 81(3), pages 301-316, September.

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