The corner solution (the health trajectory in scenario B and in scenario A before age t1, see Fig. 1) is provided by (28) and (29). The time t1 when health has deteriorated to the “threshold” follows from equating (31) or (33) with (28). Similar to the previous discussion for the pure investment model, the model thus implies a switch of regimes at time t1. Before t1 the evolution of health is given by Eq. (28), whereas after t1 it is given by (31) or by (33). Similarly, before t1 medical care is given by Eq. (29), whereas after t1 it is given by (25) or alternatively (35).