[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/a/taf/oxdevs/v36y2008i3p339-361.html
   My bibliography  Save this article

A Study of the Sensitivity of Longevity-adjusted Income Measures

Author

Listed:
  • Gregory Ponthiere
Abstract
This paper aims to explore the sensitivity of longevity-adjusted measures of income, which have become increasingly popular as indicators of basic standards of living. For that purpose, longevity-adjusted income measures are computed for post-war Japan under various sets of postulates, concerning the temporal horizon regarded as relevant for the measurement of welfare, the ethical treatment of age structures, the degree of endogeneity of longevity, the value of a statistical life (VSL) used in the calibration of preference parameters, and preference parameters themselves (for a given VSL). Pictures of Japan's development are significantly sensitive to those postulates, suggesting that longevity-adjusted income measures should be computed under not one—as is usually done—but several assumption sets, to account for the difficulty of solving the income/longevity weighting problem. Hence, this study casts new light on the trade-offs raised by the aggregation of economic and demographic achievements into a preferences-based composite indicator.

Suggested Citation

  • Gregory Ponthiere, 2008. "A Study of the Sensitivity of Longevity-adjusted Income Measures," Oxford Development Studies, Taylor & Francis Journals, vol. 36(3), pages 339-361.
    • Handle: RePEc:taf:oxdevs:v:36:y:2008:i:3:p:339-361
    DOI: 10.1080/13600810802264464
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/13600810802264464
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13600810802264464?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dora L. Costa & Matthew E. Kahn, 2004. "Changes in the Value of Life, 1940--1980," Journal of Risk and Uncertainty, Springer, vol. 29(2), pages 159-180, September.
    2. Johansson,Per-Olov, 1995. "Evaluating Health Risks," Cambridge Books, Cambridge University Press, number 9780521478786, September.
    3. Richard Blundell & Martin Browning & Costas Meghir, 1994. "Consumer Demand and the Life-Cycle Allocation of Household Expenditures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(1), pages 57-80.
    4. Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2005. "The Quantity and Quality of Life and the Evolution of World Inequality," American Economic Review, American Economic Association, vol. 95(1), pages 277-291, March.
    5. Burton A. Weisbrod, 1962. "An Expected-Income Measure of Economic Welfare," Journal of Political Economy, University of Chicago Press, vol. 70(4), pages 355-355.
    6. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    7. Louis Kaplow, 2005. "The Value of a Statistical Life and the Coefficient of Relative Risk Aversion," Journal of Risk and Uncertainty, Springer, vol. 31(1), pages 23-34, July.
    8. Lant Pritchett & Lawrence H. Summers, 1996. "Wealthier is Healthier," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 841-868.
    9. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    10. repec:bla:econom:v:52:y:1985:i:27:p:281-94 is not listed on IDEAS
    11. Richard H. Steckel & Roderick Floud, 1997. "Introduction to "Health and Welfare during Industrialization"," NBER Chapters, in: Health and Welfare during Industrialization, pages 1-16, National Bureau of Economic Research, Inc.
    12. Gregory Ponthiere, 2007. "Monetizing Longevity Gains under Welfare Interdependencies: An Exploratory Study," Journal of Family and Economic Issues, Springer, vol. 28(3), pages 449-469, September.
    13. Johansson,Per-Olov, 1995. "Evaluating Health Risks," Cambridge Books, Cambridge University Press, number 9780521472852, September.
    14. Crafts, N. F. R., 1997. "The Human Development Index and changes in standards of living: Some historical comparisons," European Review of Economic History, Cambridge University Press, vol. 1(3), pages 299-322, December.
    15. Broome, John, 1978. "Trying to value a life," Journal of Public Economics, Elsevier, vol. 9(1), pages 91-100, February.
    16. Ruut Veenhoven, 1996. "Happy life-expectancy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 39(1), pages 1-58, January.
    17. Richard H. Steckel & Roderick Floud, 1997. "Health and Welfare during Industrialization," NBER Books, National Bureau of Economic Research, Inc, number stec97-1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pierre Pestieau & Gregory Ponthiere, 2012. "The Public Economics of Increasing Longevity," Hacienda Pública Española / Review of Public Economics, IEF, vol. 200(1), pages 41-74, March.
    2. Leroux, Marie-Louise & Ponthiere, Gregory, 2013. "Utilitarianism and unequal longevities: A remedy?," Economic Modelling, Elsevier, vol. 30(C), pages 888-899.
    3. Shaun M. Da Costa, 2020. "The impact of the Ebola crisis on mortality and welfare in Liberia," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1517-1532, December.
    4. Da Costa, Shaun, 2023. "Estimating the welfare gains from anti-retroviral therapy in Sub-Saharan Africa," Journal of Health Economics, Elsevier, vol. 90(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Grégory Ponthière, 2007. "Les conditions de vie en France se sont-elles détériorées vis-à-vis de celles prévalant aux Etats-Unis? Un autre regard sur la thèse du décrochage français," CREPP Working Papers 0702, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
    2. Harun Onder & Pierre Pestieau & Gregory Ponthiere, 2019. "Equivalent income versus equivalent lifetime: does the metric matter?," Erudite Working Paper 2019-05, Erudite.
    3. Daniel Gallardo-Albarrán, 2024. "Capital, Productivity, and Human Welfare Since 1870," Springer Books, in: Claude Diebolt & Michael Haupert (ed.), Handbook of Cliometrics, edition 3, pages 2023-2048, Springer.
    4. Gregory Ponthiere, 2007. "Monetizing Longevity Gains under Welfare Interdependencies: An Exploratory Study," Journal of Family and Economic Issues, Springer, vol. 28(3), pages 449-469, September.
    5. Gregory Ponthiere, 2016. "The contribution of improved joint survival conditions to living standards: an equivalent consumption approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(2), pages 407-449, February.
    6. Schultz, T. Paul, 2010. "Population and Health Policies," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4785-4881, Elsevier.
    7. Leandro Prados de la Escosura, 2015. "World Human Development: 1870–2007," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(2), pages 220-247, June.
    8. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    9. Crafts, Nicholas, 2000. "Development history," Economic History Working Papers 22384, London School of Economics and Political Science, Department of Economic History.
    10. Harun Onder & Pierre Pestieau & Grégory Ponthière, 2017. "The domestic welfare loss of Syrian Civil War: An equivalent income approach," Working Papers hal-01581896, HAL.
    11. Gallardo-Albarrán, Daniel, 2019. "Missed opportunities? Human welfare in Western Europe and the United States, 1913–1950," Explorations in Economic History, Elsevier, vol. 72(C), pages 57-73.
    12. Daniel Gallardo Albarr‡n, 2017. "Missed opportunities? The development of human welfare in Western Europe, 1913-1950," Working Papers 0114, European Historical Economics Society (EHES).
    13. Nicola Amendola & Giacomo Gabbuti & Giovanni Vecchi, 2018. "On the use of composite indices in economic history. Lessons from Italy, 1861-2017," HHB Working Papers Series 11, The Historical Household Budgets Project.
    14. repec:cte:whrepe:wp07-05 is not listed on IDEAS
    15. Kenny, Charles, 2005. "Why Are We Worried About Income? Nearly Everything that Matters is Converging," World Development, Elsevier, vol. 33(1), pages 1-19, January.
    16. Nicola Amendola & Giacomo Gabbuti & Giovanni Vecchi, 2023. "On some problems of using the Human Development Index in economic history," European Review of Economic History, European Historical Economics Society, vol. 27(4), pages 477-505.
    17. Pradhan, Menno & Sahn, David E. & Younger, Stephen D., 2003. "Decomposing world health inequality," Journal of Health Economics, Elsevier, vol. 22(2), pages 271-293, March.
    18. Stanislav Holubec & Béla Tomka, 2023. "Human Development Index: Changes in East Central Europe, 1913-2010," Politická ekonomie, Prague University of Economics and Business, vol. 2023(2), pages 130-152.
    19. Marc Fleurbaey & Grégory Ponthière, 2019. "The Value of a Life-Year and the Intuition of Universality," PSE Working Papers halshs-02393392, HAL.
    20. Henrik Andersson & Nicolas Treich, 2011. "The Value of a Statistical Life," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 17, Edward Elgar Publishing.
    21. James K. Hammitt, 2020. "Valuing mortality risk in the time of COVID-19," Journal of Risk and Uncertainty, Springer, vol. 61(2), pages 129-154, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oxdevs:v:36:y:2008:i:3:p:339-361. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CODS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.