Intergenerational Transmission of Noncommunicable Chronic Diseases

Catarina Goulão and Agustín Pérez-Barahona

Journal of Public Economic Theory, 2014, vol. 16, issue 3, 467-490

Abstract: We introduce a theoretical framework that contributes to the understanding of noncommunicable chronic diseases (NCDs) epidemics: even if NCDs are noninfectious diseases, they may spread due to the social transmission of unhealthy activities such as unhealthy diet, physical inactivity, and smoking. In particular, we study the intergenerational dimension of this mechanism. We find that, due to the social transmission of NCDs, agents choose lower health conditions and higher unhealthy activities than what is socially optimal. Taxes on unhealthy activities, that may subsidize health investments, can be used to restore the social optimum. Finally, our model is consistent with the existence of regional asymmetries regarding the prevalence of obesity and NCDs.

Date: 2014
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