Uncertainty and health care spending by the elderly: is there a role for prevention?

Publication type

Research Paper

Series Number

97-16

Series

Working Papers of the ESRC Research Centre on Micro-Social Change

Author

Publication date

August 1, 1997

Abstract:

The development of preventive health strategies for the elderly has been limited by the view that risk factors have little or no role to play at old age. Using a simple health capital model, this paper shows how uncertainty about the time of death among people who have retired from the workforce may give rise to a 'pure investment' motive for buying units of health care in order to offset health-losses due to depreciation. If rates of health depreciation in the population depend on modifiable risk factors, this provides additional theoretical support for the implementation of broadly based preventive strategies to alleviate future demand for health care by the elderly.

Subjects

Link

- http://www.iser.essex.ac.uk/pubs/workpaps/pdf/1997-16

Notes

working paper

#497013

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