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The Value of Changes in Life Expectancy

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Author Info
Rosen, Sherwin

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Abstract

Valuation formulas for age-specific mortality risks are derived from life-cycle allocation theory under uncertainty and related to empirical estimates of the value of life. A change in an age-specific mortality risk affects all subsequent survivor functions and reallocates consumption and labor supply over the entire life cycle. The value of eliminating a risk to life at a specific age is the expected present value of consumer surplus from that age forward. Approximate numerical extrapolations from cross-section estimates imply that values decrease rapidly in current age and in the distance between current age and age at risk. Copyright 1988 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 1 (1988)
Issue (Month): 3 (September)
Pages: 285-304
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Handle: RePEc:kap:jrisku:v:1:y:1988:i:3:p:285-304

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Web page: http://www.springerlink.com/link.asp?id=100299

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

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This page was last updated on 2008-12-16.


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