Citation

Johansson-Stenman O, Martinsson P. J. Health Econ. 2008; 27(3): 739-752.

Affiliation

Department of Economics, Göteborg University, Box 640, SE 405 30 Göteborg, Sweden. olof.johansson@economics.gu.se

Copyright

(Copyright © 2008, Elsevier Publishing)

DOI

10.1016/j.jhealeco.2007.10.001

PMID

18164772

Abstract

We develop a theoretical model of the ethical preferences of individuals, combining individual social welfare functions and random utility theory. The model is applied by conducting a choice experiment regarding safety-enhancing road investments that target different age groups and road user types. The relative value of a saved life is found to decrease with age, such that the present value of a saved life-year is almost independent of age at a pure rate of time preference of a few percent. Moreover, a saved pedestrian is consistently valued higher than a saved car driver of the same age.

Language: en