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Estimation Of State-Dependent Utility Functions Using Survey Data

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  • Evans, William N.
  • Viscusi, W. Kip

Abstract

Surveys of individual's risk-dollar tradeotfs illumi· nate not only the local tradeoff rates but also can be used to address more fundamental questions about the structure of utility functions. This largely unexplored empi~ical area (s investigated by developing an econometric techn1que to est1· mate utility functions based on survey data on risk-dollar tradeoffs for minor health effects. The empirical tests indicate that for all but one of the temporary health effects consid· ered. consumers treat injuries as tantamount to a drop in income. implying that the health impact does not alter the structure of the utility function in a fundamental way.

Suggested Citation

  • Evans, William N. & Viscusi, W. Kip, 1991. "Estimation Of State-Dependent Utility Functions Using Survey Data," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271154, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea91:271154
    DOI: 10.22004/ag.econ.271154
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    References listed on IDEAS

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    1. Biddle, Jeff E & Zarkin, Gary A, 1988. "Worker Preferences and Market Compensation for Job Risk," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 660-667, November.
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