Mortality Risk, Insurance, and the Value of Life

Bauer, Daniel J.; Lakdawalla, Darius; Reif, Julian

doi:10.3386/w25055

Cited by 10 publications

(5 citation statements)

References 58 publications

(105 reference statements)

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“…2 The standard economic framework for WTP for reducing mortality risk, ie, the value of a statistical life (VSL), is usually placed in the context of statistical risks. 3 For example, a common empirical application in the VSL literature assesses the wage premium for jobs with relatively higher fatality and injury risks, which are ex-ante or statistical risks in the context of choosing a particular job and occupation category. Treatment may be linked to an identified life, whereas prevention can be linked to a statistical life.…”

Section: Introductionmentioning

confidence: 99%

“…In a 2018 study, the authors developed and applied a generalized framework for valuing health and longevity improvements. They concluded that treating a chronic condition is valued higher than preventing it would be, even if both treatment and prevention achieve the same outcome, 3 in line with the rule of rescue. On the other hand, since prevention aims to avert a decrease in health rather than treating someone who is already ill, this may instead imply higher WTP for prevention.…”

Section: Introductionmentioning

confidence: 99%

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Willingness to Pay for Health Improvements Using Stated Preferences: Prevention Versus Treatment

2020

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This study aimed to investigate whether there was a difference in willingness to pay (WTP) between prevention and treatment for health benefits of equal magnitude. Methods:We used a web-based survey instrument in a sample of the Swedish general population to perform a contingent valuation study assessing the WTP for prevention and treatment. We analyzed the WTP as a continuous variable using a twopart regression model to adjust for a mass point around 0 and a skewed distribution among respondents with a positive WTP. Results:The study found that people were less willing, on average, to pay at all for prevention than treatment, but those who were willing to pay for prevention had a higher WTP than for treatment. The latter effect was more substantial, and in total mean WTP for prevention was about 85% higher than for treatment. Conclusions:The findings from this study contribute to the ongoing discussion on the appropriate cost-effectiveness thresholds by adding prevention as a parameter affecting the demand-side value of health improvements. As such, it can provide support to decision makers in healthcare and in health promotion priority setting.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Willingness to Pay for Health Improvements Using Stated Preferences: Prevention Versus Treatment

2020

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“…Rather, it appears that both sharp increases and sharp decreases in firm sales stress workers out! Bauer, Lakdawalla and Reif (2018) use the values of state dependence and quality of life as inputs in a structural model, and extend VSL to multiple diseases by examining the effects of these diseases on mortality risk. This framework provides exact values of marginal disutility.…”

Section: Introductionmentioning

confidence: 99%

No Pain, No Gain: Work Demand, Work Effort, and Worker Health

Hummels¹,

Munch²,

Xiang³

2016

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Increased job effort can raise productivity and income but put workers at increased risk of illness and injury. We combine Danish data on individuals' health with Danish matched worker-firm data to understand how rising exports affect individual workers' effort, injury, and illness. We find that when firm exports rise for exogenous reasons: 1. Workers work longer hours and take fewer sick-leave days; 2. Workers have higher rates of injury, both overall and correcting for hours worked; and 3. Women have higher sickness rates. For example, a 10% exogenous increase in exports increases women's rates of injury by 6.4%, and hospitalizations due to heart attacks or strokes by 15%. Finally, we develop a novel framework to calculate the marginal disutility of any non-fatal disease, such as heart attacks, and to aggregate across multiple types of sickness conditions and injury to compute the total utility loss. While the ex-ante utility loss for the average worker is small relative to the wage gain from rising exports, the ex-post utility loss is much larger for those who actually get injured or sick. David IntroductionIncreased job effort by workers may raise productivity and income both for those workers and the firms who employ them. But increased effort may come with a potential downside: putting in longer hours or working more intensively may endanger health. 1Sorting out the linkages between effort, productivity and health can be difficult. Healthier workers may be capable of working harder or longer hours, or conversely, "type A" individuals may desire to work harder and suffer health consequences, not as a result of work, but as a result of a comprehensively intensive approach to life. Working more intensively may also raise income and many studies show that higher income or wealth leads to better health (e.g. Marmot et al. 1991, Smith 1999, and Sullivan and von Wachter 2009. In contrast, Ruhm (2000)'s finding that the U.S. mortality rate is pro-cyclical suggests a competing channel: rising labor demand may lead to increased effort and so higher health risks. While the intellectual heritage of this effort channel can be traced back to Rosen (1986), its identification has remained elusive. Stevens, Miller, Page and Filipski (2015), for example, argue that Ruhm (2000)'s result for mortality is driven by staffing changes at nursing homes. 2In this paper we provide tight identification for the effort channel. Our matched worker-firm data allows us to look at changes in worker-level effort, injury and illness within job-spells, and changes in exporting activity provides a source of exogenous shocks to labor demand within the firm.We find that this increase in labor demand can be met by inducing workers to expand hours and increase work intensity, a potentially important adjustment mechanism that has been largely overlooked in the literature on globalization and labor markets (e.g. Verhoogen 2008, Autor, Dorn and Hanson 2013, and Hummels, Jørgensen, Munch and Xiang 2014, or HJMX 2014 3 . Taking this a step lin...

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“…The insurance sector, a vital player in the world's financial landscape, plays an instrumental role in mitigating risk and facilitating long-term investment capital. According to data from International business machines corporation (IBM), in 2020, global insurance premiums stood at $6.3 trillion, which made insurance isn't just about transactions (Bauer, et al, 2021). At its best, it's about trust.…”

Section: Introduction *mentioning

confidence: 99%

Evaluating the Decision to Implement Fully Automated Testing to Increase Business Quality Service in Asuransi Astra Digital Products

Hongo,

Sunitiyoso

2023

Quant. Econ. Manag. Stud.

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Taking these developments into account, this research will focus on assessing the ability of Asuransi Astra's digital teams to implement a fully automated testing process for its digital products. By analyzing various factors that can influence the successful implementation of automated testing, this research aims to provide insights in determining what and how many features requires to be selected to be tested by automation within Asuransi Astra's digital products. The aim of this research is to evaluate the discision to implement fully automated testing to increase bussines quality services in asuransi astra digital products. After determining the research design, the author requires data to assist in answering the research questions and achieving the goals. There is a process known as data collection for gathering necessary data. The model has facilitated understanding role expectations and aligned team efforts, allowing for a more synchronized approach towards teamwork and strategy.

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Mortality Risk, Insurance, and the Value of Life

Cited by 10 publications

References 58 publications

Willingness to Pay for Health Improvements Using Stated Preferences: Prevention Versus Treatment

Willingness to Pay for Health Improvements Using Stated Preferences: Prevention Versus Treatment

No Pain, No Gain: Work Demand, Work Effort, and Worker Health

Evaluating the Decision to Implement Fully Automated Testing to Increase Business Quality Service in Asuransi Astra Digital Products

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