Demand for Health As A Consumption And Investment Good H4 #48

Michael Grossman’s explains health as both a consumption and as an investment good. As a consumption good, the demand for health directly enters consumers’ preference functions, consumer strives to maximize utility, and minimize sick days or disutility. As an investment good, health is a durable capital stock and the ‘healthy time’ that outflows is the ‘output’. This determines the total amount of ‘healthy time’ available to spend on producing money earnings. Investment in health Involves cost, which includes direct outlays on market goods and opportunity cost. Medical care is one of the ‘inputs’ in the production of health. Health accumulates or gains value from ‘investments’ in previous periods. The stock of health can be increased by ‘investments. The stock also depreciates over time and death occurs when the stock falls below a certain level. Individuals can ‘choose’ the length of life by making investments in health. Inputs are own time of the consumer and market goods, Medical care, diet, exercise, recreation, good housing and sleep .It also depends on external variables like the level of education of the producer which influences the efficiency of the production process.
Utility: https://www.youtube.com/watch?v=LGQl2ziTPiE&t=1525s
Demand:https://www.youtube.com/watch?v=VLjCCxal9i8&t=120s
Production:https://www.youtube.com/watch?v=7ycUCd6vF3g
Diminishing returns:https://www.youtube.com/watch?v=CW17eO7LxIk

Reach prof subhashini muthukrishnan https://www.youtube.com/channel/UCWPZEkJjM8xzTCkEnkRoSSg

demand for healthhealth as a durable capital stockhealth and education