Health as a direct input into utility Health as a consumption good enters directly into utility 口 Single-period Utility at time t U=U(Hy Z) H level of health ▣Zt=“home good” Everything non-health that contributes to utility E.g.video games,time with friends,movie tickets **Note:health health care Health care is not explicitly in the utility function i.e.Getting vaccines does not provide utility but staying healthy does Health as a consumption good Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics Health as a direct input into utility  Health as a consumption good enters directly into utility  Single-period Utility at time t Ut= U(Ht , Zt )  Ht = level of health  Zt= “home good” ◼ Everything non-health that contributes to utility ◼ E.g. video games, time with friends, movie tickets **Note: health ≠ health care  Health care is not explicitly in the utility function ◼ i.e. Getting vaccines does not provide utility but staying healthy does Health as a consumption good