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Optimal choice of prevention and cure under uncertainty on disease effect and cure effectiveness
- Source :
- Research in Economics. 72:327-342
- Publication Year :
- 2018
- Publisher :
- Elsevier BV, 2018.
-
Abstract
- This paper studies optimal prevention and cure when an agent copes with two different sources of uncertainty: uncertainty on disease effect and uncertainty on cure effectiveness. We first analyze how optimal choices are affected by uncertainty when prevention and cure do not interact. Under both types of uncertainty, we obtain that the optimal level of prevention rises. Furthermore, we characterize for each source of uncertainty the conditions for the optimal level of cure to increase. We show that these conditions are related to different measures of prudence in health and cross-prudence in wealth. Lastly, we generalize our results to the case where prevention and cure interact and characterize for each source of uncertainty the conditions for the optimal level of prevention and cure to jointly increase. These conditions are similar to those obtained in the case without uncertainty but, in this context, Edgeworth–Pareto complementarity is also required.
- Subjects :
- Economics and Econometrics
Actuarial science
030503 health policy & services
media_common.quotation_subject
05 social sciences
Context (language use)
Prudence
Disease
03 medical and health sciences
Complementarity (molecular biology)
0502 economics and business
Econometrics
Economics
050207 economics
0305 other medical science
media_common
Subjects
Details
- ISSN :
- 10909443
- Volume :
- 72
- Database :
- OpenAIRE
- Journal :
- Research in Economics
- Accession number :
- edsair.doi...........ecc68d47a13536661eb9bb016eccb39e