Producing H and Z Both Health and Home good Z must be produced with time and market inputs Ht=H(Htn,TH,Mt) Z=Z (T,J) Mt=market inputs for health H Ex:weights,treadmill Jt=market inputs for home goods Z Ex:video games,opera tickets Today's health Ht also depends on yesterday's health Ht This is health'sthird role as a stock which we discuss later Health as an input into production Bhattacharya,Hyde and Tu-HealthEconomics
Bhattacharya, Hyde and Tu – Health Economics Producing H and Z Both Health and Home good Z must be produced with time and market inputs Ht = H (Ht-1 , Tt H, Mt ) Zt = Z (Tt Z , Jt ) Mt= market inputs for health H Ex: weights, treadmill Jt= market inputs for home goods Z Ex: video games, opera tickets Today’s health Ht also depends on yesterday’s health Ht-1 This is health’s third role as a stock which we discuss later Health as an input into production
Health affects production by lowering Ts TP=O-TS=TW+TZ+TH Healthier you are,the less time you spend sick TP is productive time spent on useful activities Increased productive time can be reinvested into health(TH)or other useful endeavors (Tw,T2) Only way to reduce sick time(Ts)is to improve health Health as an input into production Bhattacharya,Hyde and Tu-HealthEconomics
Bhattacharya, Hyde and Tu – Health Economics Health affects production by lowering TS T P= Θ – T S = TW + TZ + TH Healthier you are, the less time you spend sick T P is productive time spent on useful activities Increased productive time can be reinvested into health (TH) or other useful endeavors (TW, TZ ) Only way to reduce sick time (TS ) is to improve health Health as an input into production