This paper focuses on the dynamic aspects of individual behavior affected by its social embedding, either at large (society-wide norms or averages) or at a local neighborhood. The emphasis is on how initial conditions can affect the long run outcome and to derive, discuss and apply the...

We examine within a life-cycle set-up the simultaneous choice of health care and retirement (together with consumption), when health care contributes to both a reduction in mortality and in morbidity. Health tends to impact on retirement via morbidity, determining the disutility of work, and...