The origins of the Grossman ‘Demand for Health’ model
Michael Grossman’s “Demand for Health” model turns 50 this year. To celebrate, Dr. Grossman himself provided some reflections in an article in Health Economics this month. He notes that the ‘Grossman model’ relies on two fundamental concepts: (i) health–not health care–enters into the utility function; health care services are chosen by individuals but these are…