Can Wealth Buy Health? A Model of Pecuniary and Non-Pecuniary Investments in Health

• 成果类型: Article
• 署名作者: Margaris, Panos; Wallenius, Johanna
• 署名单位: Concordia University - Canada; Stockholm School of Economics
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1093/jeea/jvad044
• 发表日期: 2023
• 页码: 1097-1138
• 关键词: physical-activity; social-security; rise; insurance; education; income

摘要

In this paper, we develop a life cycle model that features pecuniary and non-pecuniary investments in health in order to rationalize the socioeconomic gradients in health and life expectancy in the United States. Agents accumulate health capital, which affects labor productivity, utility, the distribution of medical spending shocks, and life expectancy. We find that unequal health insurance coverage plays a negligible role in generating the observed gaps in health and longevity. Universal health insurance increases preventive medical spending but not time spent in health promoting activities, as individuals are no longer worried about avoiding high curative medical expenditure shocks due to increased health insurance coverage. Our findings suggest that differences in lifetime income, preferences, and health shocks are the main determinants of inequality in life expectancy.