We develop a numerical life-cycle model with choice over consumption and leisure, stochastic mortality and labor income processes, and calibrated to U.S. data – to characterize willingness to pay (WTP) for mortality risk reduction. Our theoretical framework can explain many empirical findings in this literature, including an inverted-U life-cycle WTP and an order of magnitude difference in prime-aged adults WTP. By endogenizing leisure and employing multiple income measures, we reconcile the literature's large variation in estimated income elasticities. By accounting for gender- and race-specific stochastic mortality and income processes, we explain the literature's black-white and female-male differences.
Joseph E. Aldy
Press Release — May 21, 2019
New Episode of Resources Radio on How the Trump Administration’s ACE Rule Affects Emissions
Resources Radio: How the Trump Administration's ACE Rule Affects Emissions, with Amelia Keyes
Daniel Raimi talks with Amelia Keyes about her recent research on the Affordable Clean Energy (ACE) rule.
Report — May 21, 2019
Reducing Impacts of Food Loss and Waste
A report by the National Academies of Sciences, Engineering, and Medicine Committee on Reducing Food Loss and Waste