Individual and Household Values of Mortality Reductions with Intrahousehold Bargaining

Jon Strand

Journal of Risk and Uncertainty, 2005, vol. 31, issue 2, 217-236

Abstract: I derive alternative measures of maximum willingness to pay (WTP) and value of statistical life (VSL) for selfish members of two-person households who bargain efficiently over consumption of individual and household goods. There is then no systematic bias in letting one member conduct the valuation on behalf of the household. Public-good VSL may exceed private-good VSL when each member attaches (selfish) preferences to survival of the spouse, and to any income from a surviving spouse in period 2. When period 2 is a retirement period and household members’ incomes are fixed, interview surveys tend to overvalue VSL due to ignored negative effects of own survival on private of public pension budgets. Copyright Springer Science + Business Media, Inc. 2005

Keywords: value of statistical life; household bargaining; intertemporal allocation models; optimal life insurance (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (11)

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Working Paper: Individual and household value of mortality reductions with intrahousehold bargaining (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jrisku:v:31:y:2005:i:2:p:217-236

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DOI: 10.1007/s11166-005-3555-6

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