A Stated Preference Approach to Assess whether Health Status Impacts on Marginal Utility of Consumption

A sample of Danish citizens (n = 2000) was asked to participate in a hypothetical experiment in which they could self‐insure against a certain loss in income across two periods of time (one in which the person is in good health and one in which the person is in poorer health). Our results suggest th...

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Bibliographic Details
Published in:Health economics 2017-10, Vol.26 (10), p.1224-1233
Main Author: Gyrd‐Hansen, Dorte
Format: Article
Language:English
Subjects:
Adult
Aged
Consumer Behavior - statistics & numerical data
Consumption
Denmark
Economic models
Female
Health economics
Health problems
health state dependent utility
Health Status
Humans
Income - statistics & numerical data
Insurance, Health - statistics & numerical data
Male
Marginal utility
Middle Aged
optimal insurance
Socioeconomic Factors
stated preference experiment
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Summary:A sample of Danish citizens (n = 2000) was asked to participate in a hypothetical experiment in which they could self‐insure against a certain loss in income across two periods of time (one in which the person is in good health and one in which the person is in poorer health). Our results suggest that reduced health impacts on the marginal utility of consumption, but not in a linear fashion. Amongst a majority of respondents inferior, health increases the marginal utility of consumption for intermediate health states, whereas this is not the case for less and more severe health states. Copyright © 2016 John Wiley & Sons, Ltd.
ISSN:1057-9230
1099-1050
DOI:10.1002/hec.3393