The chapter "The Demand for Health" by Michael Grossman from Columbia University Press explores the theoretical and empirical aspects of health demand. It begins with an introduction to the model and equilibrium conditions, followed by a detailed examination of the shadow price of health, including the investment demand curve, variations in depreciation rates, life cycle patterns, cross-sectional variations, and the role of uncertainty. The chapter also discusses market and nonmarket efficiency, wage effects, and the role of human capital. The pure consumption model is then presented, covering life cycle patterns and market and nonmarket efficiency. An empirical formulation of the model is introduced, including its structure, reduced form, and measurement of health and variables. Empirical results from the NORC sample are discussed, focusing on Whites with positive sick time, demand curves for health and medical care, and the gross investment production function. The role of disability insurance is also analyzed. Supplementary results for all Whites in the labor force and males are provided. The chapter concludes with a discussion on joint production and mortality data, including the theory of joint production and the statistical properties of the model.The chapter "The Demand for Health" by Michael Grossman from Columbia University Press explores the theoretical and empirical aspects of health demand. It begins with an introduction to the model and equilibrium conditions, followed by a detailed examination of the shadow price of health, including the investment demand curve, variations in depreciation rates, life cycle patterns, cross-sectional variations, and the role of uncertainty. The chapter also discusses market and nonmarket efficiency, wage effects, and the role of human capital. The pure consumption model is then presented, covering life cycle patterns and market and nonmarket efficiency. An empirical formulation of the model is introduced, including its structure, reduced form, and measurement of health and variables. Empirical results from the NORC sample are discussed, focusing on Whites with positive sick time, demand curves for health and medical care, and the gross investment production function. The role of disability insurance is also analyzed. Supplementary results for all Whites in the labor force and males are provided. The chapter concludes with a discussion on joint production and mortality data, including the theory of joint production and the statistical properties of the model.