Arbeitspapier

Money for Health: The Compensating Variation of Cardiovascular Diseases

This paper introduces a new method to calculate the extent to which individuals are willing to trade money for improvements in their health status. An individual welfare function of income (WFI) is applied to calculate the compensating income variation of health impairments. We believe that this approach avoids various drawbacks of alternative willingness-to-pay methods. The WFI is used to calculate the compensating variation of cardiovascular diseases. It is found that for a 25-year old male the compensating variation of a heart disease ranges from 160,000 Euro to 430,000 Euro depending on the welfare level. This is about 8,000 to 32,000 Euro for an additional life year, depending on the quality of life. The compensating variation declines with age and is lower for women than for men. The estimates further vary by the discount rate chosen. The estimates of the compensating variation are generally higher than the money spent on heart related medical interventions per QALY.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 653

Klassifikation
Wirtschaft
Health: General
Health Behavior
Thema
compensating income variations
cardiovascular disease
subjective income
Gesundheit
Herzkrankheit
Kosten-Nutzen-Analyse
Kompensationslösung
Niederlande

Ereignis
Geistige Schöpfung
(wer)
Groot, Wim
Maassen van den Brink, Henriëtte
Plug, Erik
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2002

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Groot, Wim
  • Maassen van den Brink, Henriëtte
  • Plug, Erik
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2002

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