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Skills of the trade: valuing health risk reductions in benefit-cost analysis

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  • Robinson, Lisa A.
  • Hammitt, James K.

Abstract

Many public policies and private actions affect the risk of injury, illness, or death, yet changes in these risks are not easily valued using market prices. We discuss how to value these risk reductions in the context of benefit-cost analysis. We begin with a pragmatic focus, describing the analytic framework and the approaches currently used for valuation, including estimates of willingness to pay, cost of illness, and monetized quality-adjusted life years. We then turn to some conceptual issues that illustrate areas in need of further exploration.

Suggested Citation

  • Robinson, Lisa A. & Hammitt, James K., 2013. "Skills of the trade: valuing health risk reductions in benefit-cost analysis," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 4(1), pages 107-130, March.
    • Handle: RePEc:cup:jbcoan:v:4:y:2013:i:01:p:107-130_00
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    Cited by:

    1. Hoffmann, Sandra & Anekwe, Tobenna D., 2013. "Making Sense of Recent Cost-of-Foodborne-Illness Estimates," Economic Information Bulletin 262123, United States Department of Agriculture, Economic Research Service.
    2. Sunstein, Cass R., 2013. "The value of a statistical life: some clarifications and puzzles," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 4(2), pages 237-261, August.
    3. Louise B. Russell, 2014. "Do We Really Value Identified Lives More Highly Than Statistical Lives?," Medical Decision Making, , vol. 34(5), pages 556-559, July.
    4. Morteza Chalak & Veronique Florec & Atakelty Hailu & Fiona Gibson & David Pannell, 2017. "Integrating non-market values in economic analyses of flood mitigation: a case study of the Brown Hill and Keswick creeks catchment in Adelaide," Working Papers 256513, University of Western Australia, School of Agricultural and Resource Economics.
    5. Chang, Angela.Y & Hammitt, James K. & Resch, S.C & Robinson, Lisa A., 2017. "The economics in 'Global Health 2035': a sensitivity analysis of the value of a life year estimates," TSE Working Papers 17-756, Toulouse School of Economics (TSE).
    6. Lisa A. Robinson & James K. Hammitt & Richard J. Zeckhauser, 2016. "Attention to Distribution in U.S. Regulatory Analyses," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(2), pages 308-328.
    7. Robinson, Lisa A. & Raich, William J. & Hammitt, James K. & O’Keeffe, Lucy, 2019. "Valuing Children’s Fatality Risk Reductions," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 10(2), pages 156-177, July.
    8. Lisa A. Robinson & James K. Hammitt, 2016. "Valuing Reductions in Fatal Illness Risks: Implications of Recent Research," Health Economics, John Wiley & Sons, Ltd., vol. 25(8), pages 1039-1052, August.
    9. Lisa A. Robinson & James K. Hammitt, 2015. "Research Synthesis and the Value per Statistical Life," Risk Analysis, John Wiley & Sons, vol. 35(6), pages 1086-1100, June.

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