stock of health, the impact of health on productivity, and the importance of health for utility and it is robust against the …This paper provides a closed-form solution for the health capital model of health demand. The results are exploited in … model, the pure consumption model and a combination of both types of models. Given the plausible assumptions that (i) health …

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 "optimalʺ 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 …