EconPapers    
Economics at your fingertips  
 

Utility functions for mild and severe health risks

W Viscusi

Journal of Risk and Uncertainty, 2019, vol. 58, issue 2, 143-166

Abstract: Abstract This article reviews economic evidence on health-dependent utility functions and presents new estimates of utility functions for cancer. Estimates of health-dependent utility functions have found that mild adverse health impacts can be treated as monetary equivalents. Severe health consequences also reduce utility levels but have an additional effect of altering the structure of utility functions by reducing the marginal utility of income. The implications of past studies are often misleading when they fail to account for income losses and medical expenses associated with serious ailments. This article’s estimates of the structure of utility functions for cancer indicate a substantially lower marginal utility of income at any given income level. This result is consistent with the welfare consequences of other severe health effects, which impose harms that are not tantamount to a monetary loss.

Keywords: Value of statistical life; VSL; Cancer; Utility; Health risk; Willingness to pay; I10; K13; K32; D8 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11166-019-09301-9 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
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:kap:jrisku:v:58:y:2019:i:2:d:10.1007_s11166-019-09301-9

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11166/PS2

Access Statistics for this article

Journal of Risk and Uncertainty is currently edited by W. Kip Viscusi

More articles in Journal of Risk and Uncertainty from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-11-06
Handle: RePEc:kap:jrisku:v:58:y:2019:i:2:d:10.1007_s11166-019-09301-9