Demand for health risk reductions

Trudy Cameron () and J.R. DeShazo

Journal of Environmental Economics and Management, 2013, vol. 65, issue 1, 87-109

Abstract: A choice model based on utility in a sequence of prospective future health states permits us to generalize the concept of the value of statistical life (VSL). Our representative national survey asks individuals to choose between costly risk-reducing programs and the status quo in randomized stated choice scenarios. Our model allows for separate marginal utilities for discounted net income and avoided illness years, post-illness years, and lost life-years. Our estimates permit calculation of overall willingness to pay to reduce risks for a wide variety of different prospective illness profiles. These can be benchmarked against the standard VSL as a special case.

Keywords: Value of a microrisk reduction; Value of a statistical life; Risk reduction; Risk valuation; Mortality risks; Morbidity risks; Illness profiles; Benefit-cost analysis; Choice model; Representative national survey (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (60)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:65:y:2013:i:1:p:87-109

DOI: 10.1016/j.jeem.2012.05.008

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