Uncertainty and health care spending by the poor: the health capital model revisited.

This short theoretical paper examines health care utilization by the poor in the context of Grossman's (1972) health capital model. Earlier work has shown that uncertainty can reduce the attractiveness to the poor of health capital investments. This paper demonstrates that uncertainty can also have precisely the opposite effect. That is, while there may be cases in which it is excessively risky for the poor to invest in their health, there may also be cases in which the poor can ill-afford the risks that arise from not making timely investments in their health.