The discount rate and the value of remaining years of life

John M. Hartwick

Economics Letters, 2012, vol. 114, issue 1, 51-53

Abstract: We back out an estimate of a personal discount rate of between 3 and 4 percent for a person with a life expectancy of 74 years who dies at age 30 or 40 and has a value of statistical life of $6.3 million. We employ the Makeham “model” of life expectancy and Murphy–Topel “values of life years” in our calculations.

Keywords: Product cycle; Innovation; Mature market (search for similar items in EconPapers)
JEL-codes: I12 J17 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:114:y:2012:i:1:p:51-53

DOI: 10.1016/j.econlet.2011.08.003

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