Advertisement

The Revealed Preference Approach

  • Magnus Johannesson
Part of the Developments in Health Economics and Public Policy book series (HEPP, volume 4)

Abstract

If the costs of implementing health care programmes are to be compared directly with health benefits, it is necessary to express health consequences in monetary units. This chapter and the following chapter examine the empirical methods that economists have devised to quantify how much citizens are willing to pay in monetary terms for health effects. There are two principal approaches that can be used to obtain willingness-to-pay estimates of health changes: revealed preference as observed in actual choices or expressed preference as observed in hypothetical choices in surveys. This chapter is devoted to the revealed preference approach and the following chapter is devoted to the expressed preference approach.

Keywords

Wage Rate Statistical Life Wage Premium Smoke Detector Indoor Radon Concentration 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Akennan J, Johnson FR, Bergman L. Paying for safety: voluntary reduction of residential radon risks. Land Economics 1991; 67: 435–446.CrossRefGoogle Scholar
  2. Atkinson SE, Halvorsen R The valuation of risks to life: evidence from the market for automobiles. Review of Economics and Statistics 1990; 72: 133–136.CrossRefGoogle Scholar
  3. Atkinson SE, Crocker TD. A bayesian approach to assessing the robustness of hedonic property value studies. Journal of Applied Econometrics 1987; 2: 27–45.CrossRefGoogle Scholar
  4. Blomquist G. Value of life saving: implications of consumption activity. Journal of Political Economy 1979; 87: 540–558.CrossRefGoogle Scholar
  5. Dardis R The value of a life: new evidence from the marketplace. American Economic Review 1980;70:1077–1082.Google Scholar
  6. Garbacz C. Smoke detector effectiveness and the value of saving a life. Economic Letters 1989; 31: 281–286.CrossRefGoogle Scholar
  7. Ghosh D, Lees D, Seal W. Optimal motorway speed and some valuations of time and life. The Manchester School 1975; 43: 134–43.Google Scholar
  8. Hwang H, Reed WR, Hubbard C. Compensating wage differentials and unobserved productivity. Journal of Political Economy 1992; 100: 835–858.CrossRefGoogle Scholar
  9. Melinek SJ. A method of evaluating human life for economic purposes. Accident Analysis and Prevention 1974; 6: 103–114.CrossRefGoogle Scholar
  10. Mishan EJ. Cost-benefit analysis, 2nd edition. New York: Praeger, 1976.Google Scholar
  11. Moore MJ, Viscusi WK. The quantity-adjusted value of life. Economic Inquiry 1988; 26: 369–388.CrossRefGoogle Scholar
  12. Portney PR Housing prices, health effects, and valuing reductions in risk of death. Journal of Environmental Economics and Management 1981; 8: 72–78.CrossRefGoogle Scholar
  13. Smith A. The wealth of nations. New York: Modem Library, [ 1776 ] 1937.Google Scholar
  14. Viscusi WK. Employment hazards• an investigation of market performance. Cambridge Macsathusetts: Harvard University Press, 1979.Google Scholar
  15. Viscusi WK Fatal tradeoffs: public and private responsibilities for risk. New York: Oxford University Press, 1992. Viscusi WK. The value ofrisks to life and health. Journal of Economic Literature 1993;31:1912–1946.Google Scholar
  16. Viscusi WK, Moore MJ. Workers’ compensation: wage effects, benefit inadequacies, and the value of health losses. Review of Economics and Statistics 1987; 69: 249–261.CrossRefGoogle Scholar
  17. Viscusi WK, Moore W. Rates of time preference and valuations of the duration of life. Journal of Public Economics 1989; 38: 297–317.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media Dordrecht 1996

Authors and Affiliations

  • Magnus Johannesson
    • 1
  1. 1.Stockholm School of EconomicsSweden

Personalised recommendations