Is there a way for the Grossman model to account for inherent health disadvantages and advantages from birth on the effect investment has?
Can the Grossman model account for congenital health advantages and disadvantages or does it assume health stock is standard?
by Charlie Guest -
Number of replies: 1
In reply to Charlie Guest
Can the Grossman model account for congenital health advantages and disadvantages or does it assume health stock is standard?
by Charlie Guest -
The Grossman Model treats health as a form of capital where you are born with a starting stock and healthcare decisions throughout your life can diminish that stock or increase it. Health is naturally depreciating as well so the model also assumes that improvements in health may just maintain health and not automatically improve it.
My question was whether or not people born with congenital health defects had a lower starting stock under the Grossman model where you don't just have H(0) but something to reflect the difference. The answer is that you can have a higher Ht from birth than someone else if you are born healthier.
My question was whether or not people born with congenital health defects had a lower starting stock under the Grossman model where you don't just have H(0) but something to reflect the difference. The answer is that you can have a higher Ht from birth than someone else if you are born healthier.