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Individual and Household Values of Mortality Reductions with Intrahousehold Bargaining

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  • Jon Strand

Abstract

I derive alternative measures of maximum willingness to pay (WTP) and value of statistical life (VSL) for selfish members of two-person households who bargain efficiently over consumption of individual and household goods. There is then no systematic bias in letting one member conduct the valuation on behalf of the household. Public-good VSL may exceed private-good VSL when each member attaches (selfish) preferences to survival of the spouse, and to any income from a surviving spouse in period 2. When period 2 is a retirement period and household members’ incomes are fixed, interview surveys tend to overvalue VSL due to ignored negative effects of own survival on private of public pension budgets. Copyright Springer Science + Business Media, Inc. 2005

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  • Jon Strand, 2005. "Individual and Household Values of Mortality Reductions with Intrahousehold Bargaining," Journal of Risk and Uncertainty, Springer, vol. 31(2), pages 217-236, September.
    • Handle: RePEc:kap:jrisku:v:31:y:2005:i:2:p:217-236
    DOI: 10.1007/s11166-005-3555-6
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    3. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    4. Bosworth, Ryan & Cameron, Trudy Ann & DeShazo, J.R., 2009. "Demand for environmental policies to improve health: Evaluating community-level policy scenarios," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 293-308, May.
    5. Lindhjem, Henrik, 2007. "20 years of stated preference valuation of non-timber benefits from Fennoscandian forests: A meta-analysis," Journal of Forest Economics, Elsevier, vol. 12(4), pages 251-277, February.
    6. Henrik Lindhjem & Ståle Navrud, 2009. "Asking for Individual or Household Willingness to Pay for Environmental Goods?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(1), pages 11-29, May.
    7. Tréguier, Julie & Bonnet, Carole & Blanchet, Didier, 2025. "How Long Will You Be a Widow? Determinants, Trends, and Income Gradient in Widowhood Duration," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 62(2), pages 467-488.
    8. Isabell Goldberg & Jutta Roosen, 2007. "Scope insensitivity in health risk reduction studies: A comparison of choice experiments and the contingent valuation method for valuing safer food," Journal of Risk and Uncertainty, Springer, vol. 34(2), pages 123-144, April.
    9. Liam Delaney & Francis O’Toole, 2006. "Willingness to pay: individual or household?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 30(4), pages 305-309, December.
    10. Julie Tréguier & Carole Bonnet & Didier Blanchet, 2023. "How Long Will You be a Widow? Determinants, Trends and Income Gradient in Widowhood Duration," Working Papers kjzhzysb-5e4ngnw2h9k, French Institute for Demographic Studies.
    11. Strand, Jon, 2006. "Valuation of environmental improvements in continuous time with mortality and morbidity effects," Resource and Energy Economics, Elsevier, vol. 28(3), pages 229-241, August.

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    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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