Document Type
Article
Publication Title
The American Economic Review
Publication Date
1990
ISSN
0002-8282
Page Number
353
Keywords
utility theory, manufacturing process, industrial safety
Disciplines
Health Law and Policy | Law
Abstract
Taylor's series and logarithmic estimates of health state-dependent utility functions both imply that job injuries reduce one's utility and marginal utility of income, thus rejecting the monetary loss equivalent formulation. Injury valuations have unitary income elasticity, and the valuation of non-incremental risk changes and effects of base risks follow economic predictions.
Recommended Citation
W. Kip Viscusi and William N. Evans,
Utility Functions that Depend on Health Status: Estimates and Economic Implications, 80 The American Economic Review. 353
(1990)
Available at: https://scholarship.law.vanderbilt.edu/faculty-publications/139