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.