Search results

The most enduring measure of how individuals make personal decisions affecting their health and safety is the compensating wage differential for job safety risk revealed in the labor market via hedonic equilibrium outcomes. The decisions in turn reveal the value of a statistical life (VSL), the value of a statistical injury (VSI), and the value of a statistical life year (VSLY), which have both mortality and morbidity aspects that we describe and apply here. All such tradeoff rates play important roles in policy decisions concerning improving individual welfare. Specifically, we explicate the recent empirical research on VSL and its related concepts and link the empirical results to the ongoing examinations of many government policies intended to improve individuals' health and longevity. We pay special attention to recent issues such as the COVID pandemic and newly emerging foci on distributional consequences concerning which demographic groups may benefit most from certain regulations.

Universal helmet laws (UHLs) are widely believed to be effective in reducing motorcycle fatalities. In this chapter, we further investigate the effectiveness of such policies by focusing on their long-term impact as well as their effect on motorcycle use. Using state-level longitudinal data from 1975 to 2005, we estimate how the adoption and repeal of UHLs influence motorcycle safety. Our results confirm earlier findings that adoption of UHLs prevents fatalities, whereas repeals lead to higher fatality rates. We provide evidence that UHLs operate as intended, decreasing fatalities mainly by improving safety rather than by reducing motorcycle riding. Finally, using dynamic specifications, we show that the long-term effects of both adoption and repeal persist in the years beyond the policy change.

We study changes in age-specific diabetes-related mortality and annual health care utilization. We find that half of the estimated 16% increase of diabetic mortality falls within employable age groups. We estimate that disease combination-specific increase in case fatality has resulted in premature diabetic mortality costing $3.2 billion annually. The estimated annual direct cost of treating high-risk diabetics reaches $36 billion, of which Medicare and Other Federal Programs compensate 54%. Respiratory conditions among diabetics comprise the same proportion of high-risk diabetics as do the disease combinations including coronary heart diseases. Treating of general diabetic conditions has become more efficient as indicated by the estimated declines in per unit health care costs.