IDEAS home Printed from https://ideas.repec.org/a/cup/jbcoan/v8y2017i01p24-48_00.html
   My bibliography  Save this article

Evaluating Willingness to Pay as a Measure of the Impact of Dyslexia in Adults

Author

Listed:
  • Herrera-Araujo, Daniel
  • Shaywitz, Bennett A.
  • Holahan, John M.
  • Marchione, Karen E.
  • Michaels, Reissa
  • Shaywitz, Sally E.
  • Hammitt, James K.

Abstract

While much is known about dyslexia in school-age children and adolescents, less is known about its effects on quality of life in adults. Using data from the Connecticut Longitudinal Study, we provide the first estimates of the monetary value of improving reading, speaking, and cognitive skills to dyslexic and nondyslexic adults. Using a stated-preference survey, we find that dyslexic and nondyslexic individuals value improvements in their skills in reading speed, reading aloud, pronunciation, memory, and information retrieval at about the same rate. Because dyslexics have lower self-reported levels on these skills, their total willingness to pay to achieve a high level of skill is substantially greater than for nondyslexics. However, dyslexic individuals’ willingness to pay (averaging $3000 for an improvement in all skills simultaneously) is small compared with the difference in earnings between dyslexic and nondyslexic adults. We estimate that dyslexic individuals earn 15% less per year (about $8000) than nondyslexic individuals. Although improvements in reading, speaking, and cognitive skills in adulthood are unlikely to eliminate the earnings difference that reflects differences in educational attainment and other factors, stated-preference estimates of the value of cognitive skills may substantially underestimate the value derived from effects on lifetime earnings and health.

Suggested Citation

  • Herrera-Araujo, Daniel & Shaywitz, Bennett A. & Holahan, John M. & Marchione, Karen E. & Michaels, Reissa & Shaywitz, Sally E. & Hammitt, James K., 2017. "Evaluating Willingness to Pay as a Measure of the Impact of Dyslexia in Adults," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 8(1), pages 24-48, April.
    • Handle: RePEc:cup:jbcoan:v:8:y:2017:i:01:p:24-48_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S2194588817000033/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Cameron Trudy Ann & Quiggin John, 1994. "Estimation Using Contingent Valuation Data from a Dichotomous Choice with Follow-Up Questionnaire," Journal of Environmental Economics and Management, Elsevier, vol. 27(3), pages 218-234, November.
    2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, January.
    3. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    4. Sloan, Frank A. & Kip Viscusi, W. & Chesson, Harrell W. & Conover, Christopher J. & Whetten-Goldstein, Kathryn, 1998. "Alternative approaches to valuing intangible health losses: the evidence for multiple sclerosis1," Journal of Health Economics, Elsevier, vol. 17(4), pages 475-497, August.
    5. Katherine Stackelberg & James Hammitt, 2009. "Use of Contingent Valuation to Elicit Willingness-to-Pay for the Benefits of Developmental Health Risk Reductions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(1), pages 45-61, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wei Li & Nianbo Dong & Rebecca A. Maynard, 2020. "Power Analysis for Two-Level Multisite Randomized Cost-Effectiveness Trials," Journal of Educational and Behavioral Statistics, , vol. 45(6), pages 690-718, December.
    2. Herrera-Araujo, Daniel & Rheinberger, Christoph M. & Hammitt, James K., 2022. "Valuing non-marginal changes in mortality and morbidity risk," Journal of Health Economics, Elsevier, vol. 84(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rodríguez, Elsa Mirta M. & Lacaze, María Victoria & Lupín, Beatriz, 2007. "Willingness to pay for organic food in Argentina: evidence from a consumer survey," Nülan. Deposited Documents 1300, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    2. Stephanie F. Stefanski & Jay P. Shimshack, 2016. "Valuing Marine Biodiversity in the Gulf of Mexico: Evidence from the Proposed Boundary Expansion of the Flower Garden Banks National Marine Sanctuary," Marine Resource Economics, University of Chicago Press, vol. 31(2), pages 211-232.
    3. Kanchanaroek, Yingluck & Aslam, Uzma, 2017. "Assessing Farmers’ Preferences To Participate In Agri-environment Policies In Thailand," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260888, European Association of Agricultural Economists.
    4. Matthieu Lapparent & Martin Koning, 2016. "Analyzing time sensitivity to discomfort in the Paris subway: an interval data model approach," Transportation, Springer, vol. 43(5), pages 913-933, September.
    5. Richard Carson & Nicholas Flores & Norman Meade, 2001. "Contingent Valuation: Controversies and Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(2), pages 173-210, June.
    6. Siikamaki, Juha & Layton, David F., 2007. "Discrete choice survey experiments: A comparison using flexible methods," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 122-139, January.
    7. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    8. Bechtold, Kai-Brit & Abdulai, Awudu, 2012. "Using Choice Experiments to Measure Consumers’ Preferences for Functional Dairy Products in Germany: Are Willingness-To-Pay Estimates Affected by Starting Point Bias?," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 135073, Agricultural Economics Society.
    9. Jayson L. Lusk & Darren Hudson, 2004. "Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 152-169.
    10. Bechtold, Kai-Brit & Abdulai, Awudu, 2012. "Willingness-To-Pay for Functional Dairy Products and the Influence of Starting Point Bias: Empirical Evidence for Germany," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124776, Agricultural and Applied Economics Association.
    11. Kanchanaroek, Yingluck & Aslam, Uzma, 2018. "Policy schemes for the transition to sustainable agriculture—Farmer preferences and spatial heterogeneity in northern Thailand," Land Use Policy, Elsevier, vol. 78(C), pages 227-235.
    12. Daniel A. Brent & Lata Gangadharan & Anke Leroux & Paul A. Raschky, 2016. "Putting Your Money Where Your Mouth Is," Monash Economics Working Papers 42-16, Monash University, Department of Economics.
    13. José L Oviedo & Pablo Campos & Alejandro Caparrós, 2022. "Contingent valuation of landowner demand for forest amenities: application in Andalusia, Spain [Optimal design for discrete choice contingent valuation surveys: single-bound, double-bound and bivar," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(3), pages 615-643.
    14. Dambala Gelo & Steven F. Koch, 2011. "Contingent Valuation of Community Forestry Programs in Ethiopia: Observing Preference Anomalies in Double-Bounded CVM," Working Papers 201124, University of Pretoria, Department of Economics.
    15. Gelo, Dambala & Koch, Steven F., 2015. "Contingent valuation of community forestry programs in Ethiopia: Controlling for preference anomalies in double-bounded CVM," Ecological Economics, Elsevier, vol. 114(C), pages 79-89.
    16. Ludwig, Jens & Cook, Philip J, 2001. "The Benefits of Reducing Gun Violence: Evidence from Contingent-Valuation Survey Data," Journal of Risk and Uncertainty, Springer, vol. 22(3), pages 207-226, May.
    17. Jimenez Mori, Raul Alberto, 2017. "Are Blackout Days Free of Charge?: Valuation of Individual Preferences for Improved Electricity Services," IDB Publications (Working Papers) 8424, Inter-American Development Bank.
    18. Fruth, Erik & Kvistad, Michele & Marshall, Joe & Pfeifer, Lena & Rau, Luisa & Sagebiel, Julian & Soto, Daniel & Tarpey, John & Weir, Jessica & Winiarski, Bradyn, 2019. "Economic valuation of street-level urban greening: A case study from an evolving mixed-use area in Berlin," Land Use Policy, Elsevier, vol. 89(C).
    19. Bennett, Michael T. & Gong, Yazhen & Scarpa, Riccardo, 2018. "Hungry Birds and Angry Farmers: Using Choice Experiments to Assess “Eco-compensation” for Coastal Wetlands Protection in China," Ecological Economics, Elsevier, vol. 154(C), pages 71-87.
    20. Aslam, Uzma & Termansen, Mette & Fleskens, Luuk, 2017. "Investigating farmers’ preferences for alternative PES schemes for carbon sequestration in UK agroecosystems," Ecosystem Services, Elsevier, vol. 27(PA), pages 103-112.

    More about this item

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jbcoan:v:8:y:2017:i:01:p:24-48_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/bca .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.