Beyond Expected Utility in the Economics of Health and Longevity
Cordoba, Juan Carlos; Ripoll, Marla;
Subject: life expectancy; value of statistical life; mortality risk aversion; Epstein-Zin-Weil pref- erences; Welfare; AIDS.
jel: jel:J | jel:I
We document various limitations of the expected utility model for the study of health and longevity. The model assumes individuals are indifferent between early and late resolution of uncertainty. This assumption gives rise to predictions regarding the economic value of... View more
 Becker, G., T. Philipson and R. Soares. 2005. "The Quantity and Quality of Life and the Evolution of World Inequality." American Economic Review, 95 (1): 277-291.
 Browning, M., Hansen, L. P., Heckman, J. J., 1999. "Micro data and general equilibrium models." In J. B. Taylor and M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 8, pages 543-633, Elsevier.
 Campbell, J. and G. Mankiw. 1989. "Consumption, Income and Interest Rates: Reinterpreting the Time Series Evidence," NBER Chapters, in: NBER Macroeconomics Annual 1989, Volume 4, 185-246.
 Chen, S., M. Ravallion and P. Sangruala. 2008. "Dollar a day revisited", World Bank Policy Working Paper 4620, September.
 Day, J. H., K. Miyamura, A. D. Grant, A. Leeuw, J. Munsamy, R. Baggaley and G. J. Churchyard. 2003. "Attitudes to HIV voluntary counseling and testing among mineworkers in South Africa: Will availability of antiretroviral therepy encourage testing?" AIDS CARE: Psychological and Socio-medical Aspects of AIDS/HIV, 15 (5): 665-672.
 Epstein, L., and S. E. Zin. 1989. "Risk Aversion, and the Temporal Behavior of Consumption Growth and Asset Returns: A Theoretical Framework." Econometrica, 57 (4), 937-969.
 Epstein, L. and S. E. Zin. 1991. "Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: An Empirical Analysis." Journal of Political Economy, 99 (2), 263-286.
 Jones, C. and P. Klenow. 2011. "Beyond GDP? Welfare Across Countries and Time." NBER Working Paper No. 16352.
 Hall, R. 1988. "Intertemporal Substitution in Consumption," Journal of Political Economy 96(2), 339-357.
 Hall, R. and C. Jones. 2007. "The Value of Life and the Rise in Health Spending." Quarterly Journal of Economics, 122 (1): 39-72.