Advanced Search
MyIDEAS: Login to save this paper or follow this series

Altruism, Fertility, and the Value of Children: Health Policy Evaluation and Intergenerational Welfare

Contents:

Author Info

  • Birchenall, Javier A.

    ()
    (University of California, Santa Barbara)

  • Soares, Rodrigo R.

    ()
    (Sao Paulo School of Economics)

Abstract

This paper accounts for the value of children and future generations in the evaluation of health policies. This is achieved through the incorporation of altruism and fertility in a “value of life” type of framework. We are able to express adults’ willingness to pay for changes in child mortality and also to incorporate the welfare of future generations in the evaluation of current policies. Our model clarifies a series of puzzles from the literature on the “value of life” and on intergenerational welfare comparisons. We show that, by incorporating altruism and fertility into the analysis, the estimated welfare gain from recent reductions in mortality in the U.S. easily doubles.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp2783.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2783.

as in new window
Length: 34 pages
Date of creation: May 2007
Date of revision:
Publication status: published in: Journal of Public Economics, 2009, 93 (1-2), 280-295
Handle: RePEc:iza:izadps:dp2783

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: intergenerational welfare; altruism; fertility; mortality; value of life; willingness to pay;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Joseph G. Altonji & Fumio Hayashi & Laurence Kotlikoff, . "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," IPR working papers 95-22, Institute for Policy Resarch at Northwestern University.
  2. Cameron, Trudy Ann & DeShazo, J.R. & Johnson, Erica H., 2010. "The effect of children on adult demands for health-risk reductions," Journal of Health Economics, Elsevier, Elsevier, vol. 29(3), pages 364-376, May.
  3. Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2003. "The Quantity and Quality of Life and the Evolution of World Inequality," NBER Working Papers 9765, National Bureau of Economic Research, Inc.
  4. Alessandro Cigno, 2005. "The Political Economy of Intergenerational Cooperation," CESifo Working Paper Series 1632, CESifo Group Munich.
  5. Mikhail Golosov & Larry E. Jones & Michele Tertilt, 2004. "Efficiency with Endogenous Population Growth," NBER Working Papers 10231, National Bureau of Economic Research, Inc.
  6. Rosen, Sherwin, 1981. "Valuing Health Risk," American Economic Review, American Economic Association, American Economic Association, vol. 71(2), pages 241-45, May.
  7. Theodore C. Bergstrom, 2004. "Benefit-Cost in a Benevolent Society," Public Economics, EconWPA 0405006, EconWPA.
  8. Mark Dickie, 2005. "Parental Behavior and the Value of Children's Health: A Health Production Approach," Southern Economic Journal, Southern Economic Association, vol. 71(4), pages 855-872, April.
  9. Matthias Doepke & Fabrizio Zilibotti, 2005. "The macroeconomics of child labor regulation," Staff Report, Federal Reserve Bank of Minneapolis 354, Federal Reserve Bank of Minneapolis.
  10. Jin-Tan Liu & James K. Hammitt & Jung-Der Wang & Jin-Long Liu, 2000. "Mother's willingness to pay for her own and her child's health: a contingent valuation study in Taiwan," Health Economics, John Wiley & Sons, Ltd., vol. 9(4), pages 319-326.
  11. Cameron, Trudy Ann & DeShazo, J.R., 2013. "Demand for health risk reductions," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 87-109.
  12. Angus Deaton, 2004. "Health in an age of globalization," Working Papers, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing. 245, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  13. Robin R. Jenkins & Nicole Owens & Lanelle Bembenek Wiggins, 2001. "Valuing Reduced Risks To Children: The Case Of Bicycle Safety Helmets," Contemporary Economic Policy, Western Economic Association International, vol. 19(4), pages 397-408, October.
  14. Sah, R.K., 1989. "The Effects Of Mortality Changes On Fertility Choice And Individual Welfare: Some Theoretical Predictions," Papers, Yale - Economic Growth Center 599, Yale - Economic Growth Center.
  15. Mark D. Agee & Thomas D. Crocker, 1996. "Parental Altruism and Child Lead Exposure: Inferences from the Demand for Chelation Therapy," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 677-691.
  16. W. Kip Viscusi & Wesley A. Magat & Joel Huber, 1987. "An Investigation of the Rationality of Consumer Valuations of Multiple Health Risks," RAND Journal of Economics, The RAND Corporation, vol. 18(4), pages 465-479, Winter.
  17. Dan Usher, 1973. "The Measurement of Economic Growth," Working Papers, Queen's University, Department of Economics 145, Queen's University, Department of Economics.
  18. Cox, Donald & Rank, Mark R, 1992. "Inter-vivos Transfers and Intergenerational Exchange," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 305-14, May.
  19. Kalemli-Ozcan, Sebnem, 2002. " Does the Mortality Decline Promote Economic Growth?," Journal of Economic Growth, Springer, Springer, vol. 7(4), pages 411-39, December.
  20. Gary S. Becker & Robert J. Barro, 1986. "A Reformulation of the Economic Theory of Fertility," NBER Working Papers 1793, National Bureau of Economic Research, Inc.
  21. Rosen, Sherwin, 1988. " The Value of Changes in Life Expectancy," Journal of Risk and Uncertainty, Springer, Springer, vol. 1(3), pages 285-304, September.
  22. Becker, Gary S & Murphy, Kevin M, 1988. "The Family and the State," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 31(1), pages 1-18, April.
  23. Dickie, Mark & Messman, Victoria L., 2004. "Parental altruism and the value of avoiding acute illness: are kids worth more than parents?," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1146-1174, November.
  24. Cropper, Maureen L & Sussman, Frances G, 1988. "Families and the Economics of Risks to Life," American Economic Review, American Economic Association, American Economic Association, vol. 78(1), pages 255-60, March.
  25. Jones-Lee, M W, 1992. "Paternalistic Altruism and the Value of Statistical Life," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 102(410), pages 80-90, January.
  26. Theodore J. Joyce & Michael Grossman & Fred Goldman, 1986. "An Assessment of the Benefits of Air Pollution Control: The Case of Infant Health," NBER Working Papers 1928, National Bureau of Economic Research, Inc.
  27. Esther Duflo, 2000. "Child Health and Household Resources in South Africa: Evidence from the Old Age Pension Program," American Economic Review, American Economic Association, American Economic Association, vol. 90(2), pages 393-398, May.
  28. Soares, Rodrigo R., 2006. "The welfare cost of violence across countries," Journal of Health Economics, Elsevier, Elsevier, vol. 25(5), pages 821-846, September.
  29. Cigno, Alessandro, 1993. "Intergenerational transfers without altruism : Family, market and state," European Journal of Political Economy, Elsevier, vol. 9(4), pages 505-518, November.
  30. Gary S. Becker & Julio Jorge El�as, 2007. "Introducing Incentives in the Market for Live and Cadaveric Organ Donations," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 21(3), pages 3-24, Summer.
  31. Cropper, Maureen L & Aydede, Sema K & Portney, Paul R, 1992. "Rates of Time Preference for Saving Lives," American Economic Review, American Economic Association, American Economic Association, vol. 82(2), pages 469-72, 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 in new window

Cited by:
  1. Cordoba, Juan Carlos & Ripoll, Marla, 2011. "A Contribution to the Economic Theory of Fertility," Staff General Research Papers 33899, Iowa State University, Department of Economics.
  2. Cordoba, Juan Carlos, 2012. "Children and the Wealth of Nations," Staff General Research Papers 34989, Iowa State University, Department of Economics.
  3. Córdoba, Juan Carlos & Ripoll, Marla, 2013. "What explains schooling differences across countries?," Journal of Monetary Economics, Elsevier, Elsevier, vol. 60(2), pages 184-202.
  4. Michael Kuhn & Stefan Wrzaczek & Alexia Prskawetz & Gustav Feichtinger, 2010. "Externalities in a Life-Cycle Model with Endogenous Survival," Working Papers, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna 1001, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
  5. Daniel R.C. Cerqueira & Rodrigo R. Soares, 2012. "The Welfare Cost of Homicides in Brazil: Accounting for Heterogeneity in the Willingness to Pay for Mortality Reductions," Textos para discussão, Department of Economics PUC-Rio (Brazil) 600, Department of Economics PUC-Rio (Brazil).
  6. Kuhn, Michael & Wrzaczek, Stefan & Prskawetz, Alexia & Feichtinger, Gustav, 2012. "Optimal choice of health and retirement in a life-cycle model," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 01/2012, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp2783. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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