where she considers illness and death to be random, and then
studies the individual’s investment in health and occupational choice. Muurinen
1982. elaborates on Grossman’s demand-for-health model and looks at the
comparative static results of age, education and wealth effects. Dardanoni and
Wagstaff 1990. look into the case where the effectiveness of medical care and the
incidence of illness are uncertain and derive different expressions of the demand
for medical care for different types of uncertainty. Johansson 1994. analyzes the
effects of the stochastic variable pollution on the individual’s health and his or her
valuation thereof in a production function approach. In a discrete stochastic
two-period model for the production of health, Zweifel and Breyer 1996. derive
some results of the individual’s willingness to trade between consumption today
and the probability of being healthy tomorrow.