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What Is the Value of (My and My Family's) Good Health?

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  • Luiz De Mello
  • Erwin R. Tiongson

Abstract

This paper uses several waves of the General Social Survey (GSS) including data for up to about 32,000 individuals to estimate the effect of a variety of health conditions on happiness. We show that healthy people are in general happier than individuals with poor health, controlling for a number of personal and household characteristics. On the basis of the regression results, we computed the monetary value of good health, suggesting that relatively large sums of money would be required to compensate individuals for the loss in happiness associated with poor health. Finally, we show that people become unhappy when the health status of their loved ones deteriorates. In particular, the compensating value associated with a spouse's poor health can be very large, thus pointing to some altruism in the relationship between health status and happiness.

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  • Luiz De Mello & Erwin R. Tiongson, 2009. "What Is the Value of (My and My Family's) Good Health?," Kyklos, Wiley Blackwell, vol. 62(4), pages 594-610, November.
    • Handle: RePEc:bla:kyklos:v:62:y:2009:i:4:p:594-610
    DOI: 10.1111/j.1467-6435.2009.00453.x
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    Cited by:

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    2. Aitor Calo-Blanco, 2020. "Health and fairness with other-regarding preferences," Review of Economic Design, Springer;Society for Economic Design, vol. 24(3), pages 123-141, December.
    3. Vincenzo Carrieri, 2012. "Social Comparison And Subjective Well‐Being: Does The Health Of Others Matter?," Bulletin of Economic Research, Wiley Blackwell, vol. 64(1), pages 31-55, January.
    4. Manuela Stranges & Daniele Vignoli & Alessandra Venturini, 2019. "Comparison Is The Thief Of Joy. Does Social Comparison Affect Migrants’ Subjective Well-Being?," Working Papers 201906, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    5. Simona Rasciute & Paul Downward & William H Greene, 2017. "Do Relational Goods Raise Well-Being? An Econometric Analysis," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(4), pages 563-579, September.
    6. Lars Thiel, 2014. "Illness and Health Satisfaction: The Role of Relative Comparisons," SOEPpapers on Multidisciplinary Panel Data Research 695, DIW Berlin, The German Socio-Economic Panel (SOEP).
    7. Paul McNamee & Silvia Mendolia & Oleg Yerokhin, 2021. "The transmission of partner mental health to individual life satisfaction: Estimates from a longitudinal household survey," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(4), pages 494-516, September.
    8. Ming-Chang Tsai & Heng-Hao Chang & Wan-chi Chen, 2012. "Globally Happy: Individual Globalization, Expanded Capacities, and Subjective Wellbeing," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(3), pages 509-524, September.
    9. Manuela Stranges & Daniele Vignoli & Alessandra Venturini, 2019. ""Comparison is the thief of joy". Does social comparison affect migrants’ subjective well-being?," Econometrics Working Papers Archive 2019_03, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".
    10. Emmanouil Mentzakis & Paul McNamee & Mandy Ryan & Matthew Sutton, 2012. "Valuing Informal Care Experience: Does Choice of Measure Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(1), pages 169-184, August.
    11. Paul Downward & Simona Rasciute, 2011. "An Economic Analysis of the Subjective Health and Well-being of Physical Activity," Chapters, in: Plácido Rodríguez & Stefan Késenne & Brad R. Humphreys (ed.), The Economics of Sport, Health and Happiness, chapter 2, Edward Elgar Publishing.
    12. Fernando Lera-López & Andrea Ollo-López & José Manuel Sánchez-Santos, 2017. "How Does Physical Activity Make You Feel Better? The Mediational Role of Perceived Health," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 12(3), pages 511-531, September.

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