The value of life
This paper develops a labor-based model where a worker chooses between not only work and leisure, as the traditional labor models have argued, but rather between labor, leisure and the purchase of insurance. The model allows the insurance buyer to determine the amount of insurance he is willing to w...
محفوظ في:
| المؤلف الرئيسي: | |
|---|---|
| مؤلفون آخرون: | |
| التنسيق: | article |
| منشور في: |
2008
|
| الوصول للمادة أونلاين: | http://hdl.handle.net/10725/3855 http://dx.doi.org/ 10.2202/1932-9156.1015 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php http://www.degruyter.com/view/j/jbvela.2008.3.1/jbvela.2008.3.1.1015/jbvela.2008.3.1.1015.xml |
| الوسوم: |
إضافة وسم
لا توجد وسوم, كن أول من يضع وسما على هذه التسجيلة!
|
| الملخص: | This paper develops a labor-based model where a worker chooses between not only work and leisure, as the traditional labor models have argued, but rather between labor, leisure and the purchase of insurance. The model allows the insurance buyer to determine the amount of insurance he is willing to work for and purchase while maximizing utility and deriving the shadow price of risk, thus, the value of life. The model is applied to quadratic, logarithmic, and exponential utility functions. Results can help insurance companies determine the cost of insurance associated with a specific job and related risk. |
|---|