Willing to be healthy? On the health effects of smoking, drinking and an unbalanced diet. A multivariate probit approach

Abstract

In the theoretical literature, time and medical services are essential input factors for producing health capital. Based on the idea that individuals can influence their health through health investments, we use a multi-level approach to consider the role of health relevant behaviour in the health production process. We assume that besides medical services, health relevant be-haviour and outcomes are central determinants of the assessment of health. The estimation of a multivariate probit model using German data confirms most of the formulated hypotheses about the influence of education, income and labour force status on health relevant behaviour and health. The results indicate that health policy should encourage investments in education which correspond to investments in health.