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The Welfare Cost of Homicides in Brazil: Accounting for Heterogeneity in the Willingness to Pay for Mortality Reductions

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  • Daniel Cerqueira
  • Rodrigo R. Soares

Abstract

ABSTRACT This paper estimates the health dimension of the welfare cost of homicides in Brazil incorporating age, gender, educational, and regional heterogeneities. We use a marginal willingness to pay approach to assign monetary values to the welfare cost of increased mortality due to violence. Results indicate that the present discounted value of the welfare cost of homicides in Brazil corresponds to roughly 78% of the GDP or, in terms of yearly flow, 2.3%. The analysis also shows that reliance on aggregate data to perform such calculations can lead to biases of around 20% in the estimated social cost of violence. Copyright © 2014 John Wiley & Sons, Ltd.

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  • Daniel Cerqueira & Rodrigo R. Soares, 2016. "The Welfare Cost of Homicides in Brazil: Accounting for Heterogeneity in the Willingness to Pay for Mortality Reductions," Health Economics, John Wiley & Sons, Ltd., vol. 25(3), pages 259-276, March.
  • Handle: RePEc:wly:hlthec:v:25:y:2016:i:3:p:259-276
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    1. Carvalho, Leandro S. & Soares, Rodrigo R., 2016. "Living on the edge: Youth entry, career and exit in drug-selling gangs," Journal of Economic Behavior & Organization, Elsevier, vol. 121(C), pages 77-98.

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