to accept risk for extra pay, for example, observe real-life beha grDaseu estima
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to accept risk for extra pay, for example, observe real-life beha grDaseu estimates ot willingness viors. "Stated preference" Table 4.1 How Much Is One Life Worth? Meta-analysis of wage-based studies Miller (2009) Mrozek and Taylor (2002) Viscusi and Aldy (2003) Kochi et al. (2006) Meta-analysis of stated preference studies Years covered by the studies Value of life in 2009 dollars 1974-1990 1974-1995 1974-2000 1974-2002 5.2 million 2.0 to 3.3 million 6.9 to 9.5 million 11.1 million Years covered by the studies Value of life in 2009 dollars 1988-2002 1983-2008 3.5 million 2.7 to 8.5 million 3.2 million Kochi et al. (2006) Dekker et al. (2011) Lindhjem et al. (2010) 1973-2008 Note: These data are from Mau Risk Reductions: Progress and Challenges," Discussion Paper, Washington, DC: Resources for the Future reen Cropper, James K. Hammit, and Lisa A. Robinson (201),"Valuing Mortality 95Explanation / Answer
7. The estimates of value of life described in the table above may differ because of several reasons. This value is also called as the value of statistical life. This may be affected by the following factors:
a. The type of risk in question: This can affect the risk perception of individuals. If the risks discussed in the studies differ a lot, they may change the value of statistical life.
b. Differences in the willingness to pay
c. The choice of studies for the meta analysis can also lead to the differences in estimates of Value of life.
d. The criteria involved in each study and the modelling method used can lead to a variation in the values determined. Different methods produce different results
e. Individual factors: risk taking behaviour and characteristics like age, income, gender, race etc have a bearing on the value of statistical life.
f. level of wealth : there is a relationship between income /wealth level and the value of life.
8. The Willingness to Pay(WTP) approach is used in a case with uncertain health outcomes i.e. when the individual has some risk/probability of either being diseased or healthy . The value of a reduced health risk to a person is estimated by her or his Willingness to pay for health risk reduction . Alternately, this could be shown by the willingness to accept compensation (WTA )to forgo this risk reduction. WTP and WTA are thus two sides of a single coin. WTP is thus given in monetary terms i.e.
On the other hand the QALY (Quality adjusted life years) concept does not calculate the monetary value .It includes the impact of a health intervention on both quality and quantity of life. One QALY is equal to one healthy year of quality life. It is used for comparisons across a range of diseases by giving a common index for comparisons. QALY helps in economic evaluation of health interventions( i.e. their cost-effectiveness) by giving an estimate of the cost per QALY gained.
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