Valuation of human health: An integrated model of willingness to pay for mortality and morbidity risk reductions

Shelby Gerking, Mark Dickie () and Marcella Veronesi

Journal of Environmental Economics and Management, 2014, vol. 68, issue 1, 20-45

Abstract: This paper develops and applies an integrated model of mortality and morbidity valuation that is consistent with the principles of welfare economics. To obtain the integrated model, the standard one-period expected utility model of one person facing the prospect of either being alive or dead is extended to incorporate (1) a third health state (sick) with a utility level that is intermediate to utility if healthy and utility if dead, (2) a family perspective in which a parent makes choices about risk exposure both for herself and for a child, and (3) a multi-period framework that allows for possible parent/child differences in illness latency. Monetary benefits of health risk reduction obtained from the integrated model are compared with those that would be computed using the standard model. The integrated model then is applied using data obtained from two field studies of skin cancer and leukemia to demonstrate how it can be used to estimate health benefits of reduced illness and death risks.

Keywords: Willingness to pay; Children; Environmental hazards; Integrated model; Morbidity; Mortality; Illness latency; Value of a statistical life; Cancer; Stated preference (search for similar items in EconPapers)
JEL-codes: I12 Q51 Q58 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0095069614000229
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Valuation of Human Health: An Integrated Model of Willingness to Pay for Mortality and Morbidity Risk Reductions (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:68:y:2014:i:1:p:20-45

DOI: 10.1016/j.jeem.2013.11.010

Access Statistics for this article

Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates

More articles in Journal of Environmental Economics and Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().