%0 Report
        %A Halliday, Timothy J.
%A He, Hui
%A Zhang, Hao
        %T Health Investment over the Life-Cycle
        %D 2009
        %8 2009 Oct
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4482
        %U https://www.iza.org/index.php/publications/dp4482
        %X We study the evolution of health investment over the life-cycle by calibrating a model of endogenous health accumulation. The model is able to produce the decline in labor supply with age as well as the hump-shaped consumption profile. In both cases, health and health investment play a crucial role as the former encroaches upon healthy time and the latter crowds out non-medical expenditures as people age. Finally, we quantify the value of health as both an investment and a consumption good. We show that the investment motive is about three times higher than the consumption motive during the early 20s, but decreases over the life-cycle until it disappears at retirement. In contrast, the consumption motive increases with age and surpasses the investment motive during the mid 40s.
        %K medical expenditures
%K structural model
%K health investment