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On the value of time and human life

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  • François Gardes

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

The opportunity cost of time is estimated using a model based on domestic productions depending on monetary and time expenditures and a direct utility depending on produced commodities. These factors of domestic productions are measured by the matching of a Family Budget survey with a Time Use survey. The new model is estimated on Canadian, French, Polish, U.S. and Burkina-Faso statistics. It allows estimating the economic value of human life based on the integration of the marginal value of each instant during the individual's life cycle. This value is shown to give a different pattern across countries compared to their per capita GDP. Finally, the opportunity cost of time is shown to vary between commodities according to the possibility to substitute money and time in the domestic production. It also increases relatively of the average wage rate at a macro level, between countries, according to the degree of liberalization of the labor market.

Suggested Citation

  • François Gardes, 2018. "On the value of time and human life," Post-Print halshs-01903596, HAL.
    • Handle: RePEc:hal:journl:halshs-01903596
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01903596
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    References listed on IDEAS

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    1. Carla Canelas & François Gardes & Philip Merrigan & Silvia Salazar, 2019. "Are time and money equally substitutable for all commodity groups in the household’s domestic production?," Review of Economics of the Household, Springer, vol. 17(1), pages 267-285, March.
    2. Rubin, Donald B, 1986. "Statistical Matching Using File Concatenation with Adjusted Weights and Multiple Imputations," Journal of Business & Economic Statistics, American Statistical Association, vol. 4(1), pages 87-94, January.
    3. Anil Alpman, 2016. "Implementing Rubin's alternative multiple-imputation method for statistical matching in Stata," Stata Journal, StataCorp LP, vol. 16(3), pages 717-739, September.
    4. Mark Aguiar & Erik Hurst, 2007. "Life-Cycle Prices and Production," American Economic Review, American Economic Association, vol. 97(5), pages 1533-1559, December.
    5. François Gardes, 2014. "Full price elasticities and the value of time: A Tribute to the Beckerian model of the allocation of time," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00973418, HAL.
    6. Mishan, E J, 1971. "Evaluation of Life and Limb: A Theoretical Approach," Journal of Political Economy, University of Chicago Press, vol. 79(4), pages 687-705, July-Aug..
    7. François Gardes, 2014. "Full price elasticities and the value of time: A Tribute to the Beckerian model of the allocation of time," Post-Print halshs-00973418, HAL.
    8. Mark Aguiar & Erik Hurst & Loukas Karabarbounis, 2013. "Time Use during the Great Recession," American Economic Review, American Economic Association, vol. 103(5), pages 1664-1696, August.
    9. François Gardes, 2014. "Full price elasticities and the value of time: A tribute to the Beckerian model of the allocation of time," Documents de travail du Centre d'Economie de la Sorbonne 14014, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
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    Cited by:

    1. François Gardes, 2021. "A Method to infer time preference from the value of time," Post-Print halshs-03289200, HAL.
    2. François Gardes, 2021. "An Austrian Trade Cycle model with an Endogenous Value of Time," Documents de travail du Centre d'Economie de la Sorbonne 21025, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    3. François Gardes, 2021. "An Austrian Trade Cycle model with an Endogenous Value of Time," Post-Print halshs-03325379, HAL.
    4. François Gardes, 2021. "An Austrian Trade Cycle model with an Endogenous Value of Time," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03325379, HAL.
    5. François Gardes, 2021. "A Method to infer time preference from the value of time," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03289200, HAL.

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    Keywords

    opportunity cost of time; value of human life;

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