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The value of longevity: An international analysis

Author

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  • Gabriel Martínez

Abstract

The economic value of increases in the length of life is estimated for a large set of countries using age-specific data on consumption, leisure earnings, and mortality. Estimates are sensitive to parameters on intertemporal substitution and minimum consumption, and to the interest rate. A scenario of improvement of 1/10000 survival probabilities across life results in Value of Statistical Life (VSL) gains at the beginning of life of around USD $500 for the wealthier countries, $200 for middle-income, and $30 for the poorest. Benchmark income elasticities are in general below 1, except for low-income countries at older ages. The income elasticity of VSL is calculated directly, and not, as in previous literature, calculated for less developed countries based on measurements for wealthier countries..

Suggested Citation

  • Gabriel Martínez, 2022. "The value of longevity: An international analysis," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 90(1), pages 9-42.
    • Handle: RePEc:col:000090:020259
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    File URL: https://revistas.uniandes.edu.co/doi/pdf/10.13043/DYS.90.1
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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