Question

a). How does an increase in education affect the health production function? Explain possible explanations the literature gives about the relationship between education and health and describe the graph before and after the change.

b). People with higher education typically enjoy higher income. Using Grossman’s model for the demand for health, please explain how these differences in education and income affect the optimal level of health. Explain your graph.

Answer 1

The simplest explanation to state the relationship between education and health is that education itself produces benefits that later predispose the recipient to better health outcomes. it can be taken as returns from education, such as higher earnings, as subsequent “downstream” benefits of education which will keep your mental and financial health sound and enhance your accessibility to better health care. on the other hand, we can define as we have a good education that will enhance our knowledge and which gives us a direct process or system to keep ourselves healthy. The relationship between education and health is never a simple one. Poor health not only results from lower educational attainment, but it can also cause educational setbacks and interfere with schooling. Health conditions, disabilities, and unhealthy behaviors can all have an effect on educational outcomes. so figure 1 represents the health production curve and the f1 represents the poor standard or low level of education and its output where the f1 higher level of output in terms of high income/ affordable or the gap between Aand B shows the efficiency of education on the cost of capital.

b) in Figure 2 Grossman's model for health demand explains the higher education has a positive impact on health demand or enjoy good heath demand. so the education will provide systematic guidelines for better healthcare and that will leads to a low level of sick time and that will improve your efficiency to work and to earn better than the sick person. so r+1 produce a low level of health stock when it moves forward to r+, there is an improvement in health stock compare to the previous one.