Comorbidities and the willingness to pay for reducing the risk of a targeted disease: introducing endogenous effort for risk reduction
Previous studies demonstrated that the willingness to pay (WTP) for reducing the risk of a targeted disease increases with the severity of a comorbidity condition. They evaluated the WTPs at positions where otherwise identical individuals who have unequal comorbidity conditions all have the same consumption of wealth and the same probability of getting a targeted disease. This paper endogenizes the individual effort to reduce the risk of the targeted disease. It finds that individuals with more severe comorbidity will spend more on reducing the risk of the targeted disease and, therefore, have a lower probability of getting the targeted disease and a lower net consumption of wealth at equilibrium. Nonetheless, we find that the previous conclusion concerning the relationship between the WTP for the targeted risk reduction and the comorbidity is robust. Copyright © 2004 John Wiley & Sons, Ltd.
Volume (Year): 13 (2004)
Issue (Month): 5 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749|
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.:
- Johannesson, Magnus & Johansson, Per-Olov, 1997. "Is the valuation of a QALY gained independent of age? Some empirical evidence," Journal of Health Economics, Elsevier, vol. 16(5), pages 589-599, October.
- Browning, Edgar K & Gronberg, Timothy & Liu, Liqun, 2000. "Alternative Measures of the Marginal Cost of Funds," Economic Inquiry, Western Economic Association International, vol. 38(4), pages 591-99, October.
- Viscusi, W Kip & Evans, William N, 1990. "Utility Functions That Depend on Health Status: Estimates and Economic Implications," American Economic Review, American Economic Association, vol. 80(3), pages 353-74, June.
- Usher, Dan, 2001.
"Personal goods, efficiency and the law,"
European Journal of Political Economy,
Elsevier, vol. 17(4), pages 673-703, November.
- Bleichrodt, Han & Crainich, David & Eeckhoudt, Louis, 2003.
"Comorbidities and the willingness to pay for health improvements,"
Journal of Public Economics,
Elsevier, vol. 87(11), pages 2399-2406, October.
- BLEICHRODT, Han & CRAINICH, David & EECKHOUDT, Louis, . "Comorbidities and the willingness to pay for health improvements," CORE Discussion Papers RP 1699, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Cropper, Maureen L & Aydede, Sema K & Portney, Paul R, 1994. "Preferences for Life Saving Programs: How the Public Discounts Time and Age," Journal of Risk and Uncertainty, Springer, vol. 8(3), pages 243-65, May.
- Dreze, Jean & Stern, Nicholas, 1987. "The theory of cost-benefit analysis," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 14, pages 909-989 Elsevier.
When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:13:y:2004:i:5:p:493-498. 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: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.