the demand for health: a theoretical and empirical investigation by michael grossman, published by columbia university press. the book explores the economic theory and empirical evidence of health demand, focusing on how individuals make decisions about health investment and consumption. it presents a stock approach to health demand, analyzing equilibrium conditions and the shadow price of health. the shadow price reflects the value of health in terms of economic returns, considering depreciation rates, life cycle patterns, cross-sectional variations, and uncertainty. the book also examines market and nonmarket efficiency, wage effects, and the role of human capital. a pure consumption model is discussed, highlighting life cycle patterns and efficiency in health and medical care. an empirical formulation of the model is presented, including data analysis and results from the norc sample, focusing on whites with positive sick time and the role of disability insurance. the book also addresses joint production and mortality data, discussing the theory of joint production and the analysis of mortality data. appendices provide detailed derivations, statistical properties, and additional empirical results. the work contributes to understanding health economics, offering insights into health investment decisions and their economic implications.the demand for health: a theoretical and empirical investigation by michael grossman, published by columbia university press. the book explores the economic theory and empirical evidence of health demand, focusing on how individuals make decisions about health investment and consumption. it presents a stock approach to health demand, analyzing equilibrium conditions and the shadow price of health. the shadow price reflects the value of health in terms of economic returns, considering depreciation rates, life cycle patterns, cross-sectional variations, and uncertainty. the book also examines market and nonmarket efficiency, wage effects, and the role of human capital. a pure consumption model is discussed, highlighting life cycle patterns and efficiency in health and medical care. an empirical formulation of the model is presented, including data analysis and results from the norc sample, focusing on whites with positive sick time and the role of disability insurance. the book also addresses joint production and mortality data, discussing the theory of joint production and the analysis of mortality data. appendices provide detailed derivations, statistical properties, and additional empirical results. the work contributes to understanding health economics, offering insights into health investment decisions and their economic implications.