This paper builds a model of health production that relates functional health and the health stock in a dynamic way. This distinction of the concept of health has been made in the health literature but in different contexts but has so far not been related properly. The paper uses the concept of household production and household utility maximization, and household behavior is seen to interact with providers of health care services, given a budget constraint, a time constraint, and various technological constraints including household consumption technology. Implications for public policy are drawn from the model.
Lee, K. M. W., & Edwards, J. (1998). A theory of health and health policy (CPPS Working Paper Series No.88). Retrieved from Lingnan University website: http://commons.ln.edu.hk/cppswp/44/