Abstract
This paper estimates a “Grossman” model of demand for health. We measure health status on a 0 (dead) to 1 (full health) cardinal scale by the rating scale method and the time trade-off method. We also use a categorical measure of overall health status commonly used in quality of life measurements. To estimate the demand for health equations, the Tobit technique is used for the rating scale and time trade-off health measure. The ordered probit model is used for the categorical health measure. The demand for health decreases with the price of medical care, age, overweight, smoking and living alone, and increases with income, education and the level of sporting activities.