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Life-cycle Effects of Health Risk

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Elena Capatina

In order to design and understand the effects of health care policy reforms, we need to better understand the different ways in which health affects individuals and their economic decisions.

This paper studies four channels through which health affects individuals: (1) productivity, (2) medical expenditures, (3) available time and (4) survival probabilities, and assesses their roles in determining labour supply, asset accumulation and welfare.

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