search query: @journal_id 1342 / total: 707
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| Author: | Liu, L. Neilson, W.S. |
| Title: | Endogenous private safety investment and the willingness to pay for mortality risk reductions |
| Journal: | European Economic Review
2006 : NOV, VOL. 50:8, p. 2063-2074 |
| Index terms: | risk models |
| Freeterms: | willingness to pay |
| Language: | eng |
| Abstract: | When individuals cannot undertake safety-improving expenditures (hereafter as: s-i-exps.), the effect of an increase in the initial risk (here as: e-of-in-the-init-risk) on the willingness to pay (WTP) for mortality risk reduction is positive. When they can undertake s-i-exps., e-of-in-the-init-risk is governed by two effects: 1. The dead-anyway effect as 'positive' and 2. the high-payment effect as 'negative'. This paper treats the risk-reducing expenditures types, that is, endogenous and exogenous ones, as inputs in a safety-improving technology function. There are found conditions guaranteeing that the high-payment effect dominates. |
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