Galama, Titus; Kapteyn, Arie - In: Journal of Health Economics 30 (2011) 5, pp. 1044-1056
We present a generalized solution to Grossman’s model of health capital (1972), relaxing the widely used assumption … that individuals can adjust their health stock instantaneously to an “optimal” level without adjustment costs. The Grossman … model then predicts the existence of a health threshold above which individuals do not demand medical care. Our generalized …