The chapter explores the complex relationship between health and economic status, highlighting both the direction of causation and the mechanisms through which these relationships operate. It begins by discussing the strong association between health and economic status, particularly wealth, and how poor health can limit a family's ability to accumulate assets. The text then delves into how health influences economic status, noting that poor health can restrict income and savings by reducing work capacity and increasing medical expenses. The discussion also addresses the reverse effect, where economic resources can protect individuals from the negative impacts of aging and poor health. The chapter examines various theories that explain why low economic status leads to poor health, including early childhood environmental factors, prolonged exposure to stressful events, and macro-societal factors like income inequality. It also highlights the role of physiological processes in these relationships, such as allostatic load, which refers to the cumulative toll on the body from repeated stress. The text further explores the impact of health on wealth accumulation, using life-cycle models to illustrate how health risks can affect savings behavior. It discusses the role of out-of-pocket medical expenses, changes in labor supply, and revisions in life expectancy expectations in shaping household wealth. The chapter also reviews empirical evidence from studies like the Whitehall studies and the British 1946 national birth cohort study, which provide insights into the social and economic gradients in health. Overall, the chapter emphasizes the need for a comprehensive understanding of the bidirectional relationship between health and economic status, incorporating both economic and physiological perspectives to better inform policy and research.The chapter explores the complex relationship between health and economic status, highlighting both the direction of causation and the mechanisms through which these relationships operate. It begins by discussing the strong association between health and economic status, particularly wealth, and how poor health can limit a family's ability to accumulate assets. The text then delves into how health influences economic status, noting that poor health can restrict income and savings by reducing work capacity and increasing medical expenses. The discussion also addresses the reverse effect, where economic resources can protect individuals from the negative impacts of aging and poor health. The chapter examines various theories that explain why low economic status leads to poor health, including early childhood environmental factors, prolonged exposure to stressful events, and macro-societal factors like income inequality. It also highlights the role of physiological processes in these relationships, such as allostatic load, which refers to the cumulative toll on the body from repeated stress. The text further explores the impact of health on wealth accumulation, using life-cycle models to illustrate how health risks can affect savings behavior. It discusses the role of out-of-pocket medical expenses, changes in labor supply, and revisions in life expectancy expectations in shaping household wealth. The chapter also reviews empirical evidence from studies like the Whitehall studies and the British 1946 national birth cohort study, which provide insights into the social and economic gradients in health. Overall, the chapter emphasizes the need for a comprehensive understanding of the bidirectional relationship between health and economic status, incorporating both economic and physiological perspectives to better inform policy and research.