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Valuing Children’s Fatality Risk Reductions

Published online by Cambridge University Press:  06 June 2019

Lisa A. Robinson ,
William J. Raich ,
James K. Hammitt  and
Lucy O’Keeffe
Lisa A. Robinson*
Affiliation:
Harvard University, Center for Health Decision Science and Center for Risk Analysis, 718 Huntington Avenue, Boston, MA 02115USA, e-mail: robinson@hsph.harvard.edu
William J. Raich
Affiliation:
Industrial Economics, Incorporated, 2067 Massachusetts Avenue, Cambridge, MA 02140, USA, e-mail: WRaich@indecon.com
James K. Hammitt
Affiliation:
Harvard University, Center for Health Decision Science and Center for Risk Analysis, 718 Huntington Avenue, Boston, MA 02115USA, e-mail: jkh@harvard.edu Toulouse School of Economics, Université de Toulouse Capitole, 21 allée de Brienne, 31000 Toulouse, France
Lucy O’Keeffe
Affiliation:
Harvard University, Center for Health Decision Science and Center for Risk Analysis, 718 Huntington Avenue, Boston, MA 02115, USA, e-mail: okeeffe@hsph.harvard.edu
*
*e-mail: robinson@hsph.harvard.edu
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Abstract

In benefit-cost analysis, fatality risk reductions are usually valued based on estimates of adults’ willingness to pay for changes in their own risks, regardless of whether the risk reduction accrues to adults or children. This approach reflects the relatively large number of valuation studies that address adults; however, the literature on children is growing. We review these studies, focusing on those that estimate values for both adults and children using a consistent approach to limit the effects of between-study variability. We rely on explicit selection criteria to identify studies that measure reasonably comparable outcomes and are candidates for application to analyses of U.S. policies. The ratio of values for children to values for adults ranges from 0.6 to 2.9; however, most estimates are greater than 1.5. Although some studies suggest that the divergence between child and adult values decreases as the child ages, this finding is not universal. We conclude that analysts should test the sensitivity of their results to the use of higher values for children than adults. Additional empirical research is needed to support more precise estimates of the variation in values by age that can be featured in the primary analysis.

Keywords

benefit-cost analysishealth risk valuationregulationvalue per statistical lifewillingness to payD6H4I1Q5
Type
Article
Information
Journal of Benefit-Cost Analysis , Volume 10 , Issue 2 , Summer 2019 , pp. 156 - 177
Copyright
© Society for Benefit-Cost Analysis, 2019 

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