A 3.8% Discount Rate?
AbstractWe find that a discount rate of 3.8% allows us to derive the schedule of "value of life years" in Murphy and Topel  from their schedule of "value of remaining years of life", this latter presumably being based on a "value of statistical life" of $6.3 million. We draw on the Makeham function for life expectancy in our calculation.
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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 1199.
Length: 9 pages
Date of creation: Mar 2009
Date of revision:
value of life; discount rate; life expectancy;
Find related papers by JEL classification:
- J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
- I10 - Health, Education, and Welfare - - Health - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-13 (All new papers)
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