We use a general equilibrium framework to study optimal health investment in a dynamic model where agents derive utility from consumption and health. The steady state and the dynamics of the model are studied under separable and non-separable preferences. A shock undermining health which...

We study the behavior of consumption and health investment resulting from shocks undermining health capital accumulation. We examine the effects on subsequent life cycle of long-lived shocks undermining health with either an acceleration of health capital deterioration, or a decrease in health...

This paper addresses some of the challenges confronting the European Union and China as they build their knowledge economies, and their on-going and possible future actions to address such challenges. Fifty years after the creation of what became the European Union, we argue that there is an...