incorporates mental and physical health. Correlated mental and physical health production functions are simultaneously estimated …, including the endogenous decisions to seek psychotherapy and smoke cigarettes as health accumulation factors. The model is … indicate that mental health has a stronger impact on labor supply than physical health. At the same time, estimates show that …

The contribution of cigarette smoking to national health expenditures is thought to be large, but our current … understanding of the effect of smoking on annual medical expenditures is limited to studies that use cross-sectional data to make … model of smoking and medical care use that highlights two forms of selection: selective mortality and non-random cessation …

In this paper I unify the economic theories of addiction and health deficit accumulation and develop a life cycle … theory in which individuals take into account the fact that the consumption of addictive goods reduces their health and … motivating empirically observable patterns of addictive goods consumption. I take the case of smoking as unhealthy behavior …