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

  • Daniel R.C. Cerqueira

    ()

    (IPEA)

  • Rodrigo R. Soares

    ()

    (Department of Economics PUC-Rio)

This paper estimates the health dimension of the welfare cost of homicides in Brazil incorporating age, gender, educational, and regional heterogeneities. We use the marginal willingness to pay approach from the “value of life” literature to assign monetary values to the welfare cost of increased mortality due to violence. The results indicate that the present discounted value of the welfare cost of homicides in Brazil corresponds to roughly 78% of the GDP or, measured in terms of yearly flow, 2.3%. The analysis also indicates that reliance on aggregate data to perform such calculations, without taking into account the relevant dimensions of heterogeneity, can lead to biases of the order of 20% in the estimated social cost of violence

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Paper provided by Department of Economics PUC-Rio (Brazil) in its series Textos para discussão with number 600.

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Length: 28p
Date of creation: Aug 2012
Date of revision:
Handle: RePEc:rio:texdis:600
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  1. Rodrigo R. Soares, 2007. "Health and the Evolution of Welfare across Brazilian Municipalities," NBER Working Papers 13087, National Bureau of Economic Research, Inc.
  2. Theodore C. Bergstrom, 2006. "Benefit-Cost in a Benevolent Society," American Economic Review, American Economic Association, vol. 96(1), pages 339-351, March.
  3. Jones-Lee, M W, 1992. "Paternalistic Altruism and the Value of Statistical Life," Economic Journal, Royal Economic Society, vol. 102(410), pages 80-90, January.
  4. Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2003. "The Quantity and Quality of Life and the Evolution of World Inequality," NBER Working Papers 9765, National Bureau of Economic Research, Inc.
  5. Timothy Besley & Hannes Mueller, 2009. "Estimating the peace dividend: the impact of violence on house prices in Northern Ireland," LSE Research Online Documents on Economics 25427, London School of Economics and Political Science, LSE Library.
  6. repec:reg:rpubli:282 is not listed on IDEAS
  7. Rosen, Sherwin, 1988. " The Value of Changes in Life Expectancy," Journal of Risk and Uncertainty, Springer, vol. 1(3), pages 285-304, September.
  8. Dan Usher, 1973. "An Imputation to the Measure of Economic Growth for Changes in Life Expectancy," NBER Chapters, in: The Measurement of Economic and Social Performance, pages 193-232 National Bureau of Economic Research, Inc.
  9. Alexandre X. Carvalho & Daniel R. C. Cerqueira & Rute I. Rodrigues & Waldir J. A. Lobão, 2007. "Custos das Mortes por Causas Externas no Brasil," Discussion Papers 1268, Instituto de Pesquisa Econômica Aplicada - IPEA.
  10. Ludwig, Jens & Cook, Philip J, 2001. " The Benefits of Reducing Gun Violence: Evidence from Contingent-Valuation Survey Data," Journal of Risk and Uncertainty, Springer, vol. 22(3), pages 207-26, May.
  11. Javier Birchenall & Rodrigo Reis Soares, 2007. "Altruism, Fertility, and the Value of Children: Health Policy Evaluation and Intergenerational Welfare," Textos para discussão 537, Department of Economics PUC-Rio (Brazil).
  12. Daniel R.C. Cerqueira & Alexandre X. Y. Carvalho & Waldir J. A. Lobão & Rute I. Rodrigues, 2007. "Análise dos Custos e Conseqüencias da Violência no Brasil," Discussion Papers 1284, Instituto de Pesquisa Econômica Aplicada - IPEA.
  13. Thaler, Richard, 1978. "A note on the value of crime control: Evidence from the property market," Journal of Urban Economics, Elsevier, vol. 5(1), pages 137-145, January.
  14. Viscusi, W Kip & Aldy, Joseph E, 2003. " The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
  15. Kevin M. Murphy & Robert H. Topel, 2006. "The Value of Health and Longevity," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 871-904, October.
  16. Soares, Rodrigo R., 2006. "The welfare cost of violence across countries," Journal of Health Economics, Elsevier, vol. 25(5), pages 821-846, September.
  17. Giles Atkinson & Andrew Healey & Susana Mourato, 2005. "Valuing the costs of violent crime: a stated preference approach," Oxford Economic Papers, Oxford University Press, vol. 57(4), pages 559-585, October.
  18. Cropper, Maureen L & Sussman, Frances G, 1988. "Families and the Economics of Risks to Life," American Economic Review, American Economic Association, vol. 78(1), pages 255-60, March.
  19. Rute I. Rodrigues & Daniel R. C. Cerqueira & Alexandre X. Carvalho & Waldir J. A. Lobão, 2007. "Custo da violência para o Sistema Público de Saúde no Brasil," Discussion Papers 1295, Instituto de Pesquisa Econômica Aplicada - IPEA.
  20. Gary S. Becker & Julio Jorge El�as, 2007. "Introducing Incentives in the Market for Live and Cadaveric Organ Donations," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 3-24, Summer.
  21. Sergei Suarez Dillon Soares, 2007. "Educação: Um Escudo Contra o Homicídio?," Discussion Papers 1298, Instituto de Pesquisa Econômica Aplicada - IPEA.
  22. Anderson, David A, 1999. "The Aggregate Burden of Crime," Journal of Law and Economics, University of Chicago Press, vol. 42(2), pages 611-42, October.
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