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Author links open the author workspace.</span><sup class="author-refs" data-reactid="85"><span class="author-ref" data-reactid="86"><!-- react-text: 87 -->∗<!-- /react-text --><span class="sr-only" data-reactid="88">. Numbers and letters correspond to the affiliation list. Click to expose these in author workspace</span></span></sup></a></span><dl class="affiliation" data-reactid="89"><dd data-reactid="90">University of York, Heslington, York Y01 5DD, UK</dd></dl></div></div><button class="ExpandingButton show-details" data-reactid="91"><svg viewBox="0 0 9 9" class="icon-expand" data-reactid="92"><path d="M5 7H4V5H2V4h2V2h1v2h2v1H5z" data-reactid="93"></path><path d="M0 0v9h9V0zm1 1h7v7H1z" data-reactid="94"></path></svg><!-- react-text: 95 -->Show more<!-- /react-text --></button></div><div class="DoiLink" data-reactid="96"><a class="doi" href="https://doi.org/10.1016/0167-6296(86)90015-9" target="_blank" aria-label="Persistent link using digital object identifier" title="Persistent link using digital object identifier" data-reactid="97">https://doi.org/10.1016/0167-6296(86)90015-9</a><a class="rights-and-content" target="_blank" href="https://s100.copyright.com/AppDispatchServlet?publisherName=ELS&amp;contentID=0167629686900159&amp;orderBeanReset=true" data-reactid="98">Get rights and content</a></div><!-- react-empty: 99 --><section class="ReferencedArticles" data-reactid="100"></section><section class="ReferencedArticles" data-reactid="101"></section><div class="PageDivider" data-reactid="102"></div><div class="Abstracts" data-reactid="103"><div class="abstract author" data-reactid="104"><h2>Abstract</h2><div><p>This paper presents some new estimates of the ‘pure investment’ and ‘pure consumption’ models of the demand for health. In contrast to previous studies, the paper presents parameter estimates of both reduced-form and structural demand for health care equations. The latter — which are obtained by treating health capital as a latent variable in a recursive equation system — provide a safer way of checking the consistency of the model's predictions with the data. The present analysis of the pure consumption model differs from previous analyses in its recognition of the dependency of the shadow price of initial assets of the entire lifetime profiles of the model's exogenous variables. The paper also explores the implications in terms of reliability of parameter estimates of the failure on the part of previous studies to recognize this.</p></div></div></div><!-- react-text: 105 --><!-- /react-text --><div class="PdfEmbed" role="region" aria-label="PDF viewer" data-reactid="106"><object class="embedded-pdf-styles" data="//www.sciencedirect.com/science/article/pii/0167629686900159/pdf?md5=b5d80aeea96fad24657ca6956699fc8a&amp;pid=1-s2.0-0167629686900159-main.pdf" type="application/pdf" data-reactid="107"></object><div class="download-pdf-link-container" data-reactid="108"><a class="download-pdf-link" href="//www.sciencedirect.com/science/article/pii/0167629686900159/pdf?md5=b5d80aeea96fad24657ca6956699fc8a&amp;pid=1-s2.0-0167629686900159-main.pdf" target="_blank" data-hack="#" data-reactid="109"><i class="icon-pdf" data-reactid="110"></i><span class="download-pdf-link-text" data-reactid="111">Download full text in PDF</span></a></div></div><!-- react-empty: 112 --><div class="related-content-links show-t-s hide-t hide-l hide-d" data-reactid="113"><div data-reactid="114"><div class="RelatedContentLink" data-reactid="115">Recommended articles</div><div class="RelatedContentLink" data-reactid="116">Citing articles (0)</div></div></div><div data-reactid="117"></div><div class="Footnotes" data-reactid="118"><dl class="footnote" data-reactid="119"><dt class="footnote-label" data-reactid="120"><sup data-reactid="121"><a href="#" name="bFN1" data-reactid="122">∗</a></sup></dt><dd data-reactid="123"><p>I am grateful to Michael Grossman, Joseph Newhouse and an anonymous referee for helpful comments on an earlier version of this paper; to Gavin Mooney, Kjeld Møller Pedersen and Alan Williams for helpful suggestions and encouragement; and to Karl Jöreskog and Dag Sörbom for useful advice on the use of LISREL. None of these persons, however, is responsible for any errors in the paper. Much of the work for this paper was completed whilst I was working at The Swedish Institute for Health Economics: I am grateful to Björn Lindgren for giving me the opportunity to devote so much of my time there to my thesis work. My thanks too to the Danish National Institute of Social Research for making the Danish Welfare Survey available and to the British Economic and Social Research Council for financial assistance.</p></dd></dl></div><div class="Copyright" data-reactid="124"><span class="copyright-line" data-reactid="125">Copyright © 1986 Published by Elsevier B.V.</span></div></div><div class="hide-m hide-t-s cl-t-3-9 cl-l-3-12 pad-right" data-reactid="126"><aside class="RelatedContent" role="complementary" aria-label="Related content" data-reactid="127"><!-- react-empty: 128 --><section class="SidePanel" data-reactid="129"><header class="side-panel-header" id="recommended-articles-header" data-reactid="130"><h2 data-reactid="131"><span class="section-title" data-reactid="132">Recommended articles</span></h2></header><div id="recommended-articles" aria-hidden="true" data-reactid="133"></div></section><section class="SidePanel" data-reactid="134"><header class="side-panel-header" id="undefined-header" data-reactid="135"><h2 data-reactid="136"><span class="section-title" data-reactid="137">Citing articles</span></h2></header><div aria-hidden="true" data-reactid="138"></div></section></aside></div></div><span data-reactid="139"></span></div></section></div></div></div></div></div>
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