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Is There a "Dead-Anyway" Effect in Willingness to Pay for Risk Reduction?

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Author Info
Friedrich Breyer
Markus M. Grabka

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Abstract

In einem neueren Beitrag diskutieren Pratt and Zeckhauser (JPE, 1996), welches Maß der marginalen Zahlungsbereitschaft (WTP) von Individuen für die Reduktion ihrer Sterbewahrscheinlichkeit bei öffentlichen Entscheidungen über gefahrenerhebliche Projekte verwendet werden sollte. Sie schlagen vor, die gemessene WTP um den so genannten "Dead-anyway"-Effekt zu berichtigen, der besagt, dass die WTP mit dem Ausgangswert des Risikos zunimmt, dem das befragte Individuum ausgesetzt ist. Dieser Effekt beruht allerdings auf der Abwesenheit vollkommener Märkte für bedingte Güter. Wir diskutieren zunächst die theoretischen Grundlagen des "Dead-anyway"-Effekts und schlagen dann einen neuen empirischen Test mittels der Beziehung zwischen Vermögen, Sterberisiko und Lebenszufriedenheit vor. Eine Anwendung des Tests an Hand zweier Sätze von Umfragedaten aus Deutschland und Australien ergibt keine Bestätigung für den von Pratt und Zeckhauser behaupteten Effekt.

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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 252.

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Length: 16 p.
Date of creation: 2001
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Handle: RePEc:diw:diwwpp:dp252

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Related research
Keywords: value of statistical life; mortality risk; contingent-claims markets;

Find related papers by JEL classification:
J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Hammitt, James K & Graham, John D, 1999. "Willingness to Pay for Health Protection: Inadequate Sensitivity to Probability?," Journal of Risk and Uncertainty, Springer, vol. 18(1), pages 33-62, April. [Downloadable!] (restricted)
  2. Eeckhoudt, Louis R & Hammitt, James K, 2001. " Background Risks and the Value of a Statistical Life," Journal of Risk and Uncertainty, Springer, vol. 23(3), pages 261-79, November. [Downloadable!] (restricted)
  3. Smith, V Kerry & Desvousges, William H, 1987. "An Empirical Analysis of the Economic Value of Risk Changes," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 89-114, February. [Downloadable!] (restricted)
  4. Pratt, John W & Zeckhauser, Richard J, 1996. "Willingness to Pay and the Distribution of Risk and Wealth," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 747-63, August. [Downloadable!] (restricted)
  5. Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February. [Downloadable!] (restricted)
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  1. Friedrich Breyer & Stefan Felder, 2002. "The Dead-Anyway Effect Revis(it)ed," Discussion Papers of DIW Berlin 302, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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