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Demand for health risk reductions

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  • Cameron, Trudy Ann
  • DeShazo, J.R.

Abstract

A choice model based on utility in a sequence of prospective future health states permits us to generalize the concept of the value of statistical life (VSL). Our representative national survey asks individuals to choose between costly risk-reducing programs and the status quo in randomized stated choice scenarios. Our model allows for separate marginal utilities for discounted net income and avoided illness years, post-illness years, and lost life-years. Our estimates permit calculation of overall willingness to pay to reduce risks for a wide variety of different prospective illness profiles. These can be benchmarked against the standard VSL as a special case.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jeeman:v:65:y:2013:i:1:p:87-109
    DOI: 10.1016/j.jeem.2012.05.008
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