A Model of Demand for Health and Caregiving Incorporating Marriage Markets

Abstract

According to the Grossman model, the demand for health-related goods or services varies with the costs of their substitutes produced in the household. This paper contributes to the literature on the demand for health-related products and home care by also considering substitution between goods produced at home by oneself and those produced by one's spouse or partner. It is argued that marriage market variation such as variation in individual traits of partners/spouses or in sex ratios and changes in laws about marriage or divorce may affect demand for health-related goods and home care by relatives.