Health spending obviously increase with capital per worker. This paper derives the optimal
accumulation policy in such a context. The optimal accumulation rule depends on whether
health spending improve consumption enjoyment, and on whether the planner adheres to
an instantaneous welfarist view or to a complete life view. First, when the only role of health
is to enhance longevity, we show that the capital per worker maximizing steady-state
consumption per head is inferior to the standard Golden Rule. Moreover, the capital per …