Abstract The purpose of this article is to present a system dynamics (SD) model for studying the ‎interconnections among human being weight, eating habit, exercise, body fat, take-in medication, drugs-uses, and the health problems in general. Due to the fact that all of these factors have direct and indirect impacts on the expenses that insurance company have to pay this author is proposing a ...

This paper studies the effects of health shocks on the demand for health insurance and annuities, along with precautionary saving in a dynamic life-cycle model. I argue that when the health shock can simultaneously increase health expenses and reduce longevity, rational agents would neither fully insure their uncertain health expenses nor fully annuitize their wealth because the correlation bet...