Health, Income, and Risk Aversion: Assessing Some Welfare Costs of Alcoholism and Poor Health
AbstractThe economic costs of adverse health outcomes have typically been evaluated in a context of risk neutrality, an approach that ignores the potential welfare importance of individuals' risk preferences. This paper presents a framework that unifies the research in health capital and earnings with that on risk preferences in the presence of stochastic outcomes. The model is implemented to obtain estimates of the economic damages due both to general health problems as well as to one specific health problem that is of considerable interest from society's perspective: alcoholism.
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Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Journal of Human Resources.
Volume (Year): 30 (1995)
Issue (Month): 3 ()
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Web page: http://jhr.uwpress.org/
Other versions of this item:
- John Mullahy & Jody L. Sindelar, 1994. "Health, Income, and Risk Aversion: Assessing Some Welfare Costs of Alcoholism and Poor Health," NBER Working Papers 4649, National Bureau of Economic Research, Inc.
- I1 - Health, Education, and Welfare - - Health
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