Measuring the welfare of sub-groups subject to premature mortality: The new welfare measures
International Journal of Social Economics
ISSN: 0306-8293
Article publication date: 2 September 2014
Abstract
Purpose
The purpose of this paper is to provide an exposition of the concepts relevant to measuring the economic effect of premature mortality and the conception of how the social loss from premature mortality can be incorporated into social welfare measurement. None of the conventional welfare measures currently pick up this welfare signal.
Design/methodology/approach
Various concepts are examined in the conventional and “new” literatures of welfare measurement. Six Venn diagrams show how various concepts “fit together”.
Findings
This paper outlines a framework for measuring the economic effect of premature mortality in a conceptually appropriate way. Thus the paper shows how the welfare loss associated with premature mortality can be incorporated into social welfare measurement.
Research limitations/implications
Accurate premature mortality measurement is difficult but this data problem hardly limits this exercise. Sensitivity analyses can alleviate this measurement problem.
Practical implications
The main practical implication is that empirical applications are feasible. Time series data can be analysed from this conceptual framework to determine whether the problem of the social loss from premature mortality is improving through time, or worsening.
Social implications
Knowing the size of the welfare impact of premature mortality is useful not only on policy fronts concerning premature mortality prevention.
Originality/value
“New welfare measurement” has not yet been applied to the notion of the social loss from premature mortality.
Keywords
Acknowledgements
JEL Classifications — E010, I310, I190
This paper is part of a (longer) manuscript that was presented at the 40th Australian Conference of Economists, 11-13 July 2011, The Australian National University, Canberra, Australia. We acknowledge the comments of Dr Richard Denniss. The usual caveat applies. The final version of the manuscript has been considerably improved by the constructively critical comments from this journal's excellent referee.
Citation
Doessel, D.P. and F. Williams, R. (2014), "Measuring the welfare of sub-groups subject to premature mortality: The new welfare measures", International Journal of Social Economics, Vol. 41 No. 9, pp. 722-746. https://doi.org/10.1108/IJSE-06-2013-0149
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited