Willingness to pay for relief from diseases and symptoms (The Icelandic Research Fund)
This project is testing the application of the well-being valuation method, or compensating income variation, as a way to provide valuations for a set of health conditions within Iceland and other countries. Within the method, individual life satisfaction is estimated as a function of various individual characteristics, such as household income, health and other factors affecting welfare, such as marital status and education. The results from the estimation are used to calculate an income-health trade off, keeping life satisfaction constant. This trade off, or compensating income variation, represents the monetary compensation needed by an individual with a particular health problem to have the same level of life satisfaction of an individual without the same health problem. Whilst the literature in this field suggests that it is feasible to produce valuations, a question remains over the validity of the estimates generated.
HERU researchers involved in this research project: Paul McNamee
External Collaborators: Laufey, T. (University of Iceland)