healthy economic, Public Economics

Assignment Help:
1.Suppose you are interested in assessing the value of a statistical life for individuals. You ?nd a dataset on risk and wages. You consider running the following OLS regression.
wagesi = ? B0 + ? B1 f atal_riski + ui .
Fatal_risk ranges from 0 to 100 in this example.

a.Theoretically, do we expected ? B1 to be positive or negative?

b. Suppose ? B1 = 25, 000 (with a standard error of 5,000). What is the 95 %con?dence interval for ? B1 ?

c. Calculate the VSL by using ? B1 and the implied compensation associated with a changing fatality risk from 0 to 100.

d. Recalculate the VSL using the ends of con?dence interval you calculated in part b. What is con?dence interval for the implied VSL from the above regression model?

e. What is a potential pitful of using ? B1 to calculated the necessary compensation to go from a 0 to 100 percent risk of fatality (hint, how much variation in fatality risk are we likely to observe in the data)?

2. a. Based on Ruhm’s paper on recessions and health, what are the age group where mortality has the strongest percentage response to an increase in the unemployment rate?

b. What are Ruhm’s conclusions about potential mechanisms that could explain the negative relationship between aggregate unemployment and mortality? What do you think another mechanism might be and what data would you use test your hypothesis?

Related Discussions:- healthy economic

Identify appropriate economic policy, Examine issues and decisions using th...

Examine issues and decisions using the economic way of thinking; identify appropriate economic policy; communicate economics in written format Topic Upon finishing your d

Welfare and subsidies, what are the costs and consequences of providing the...

what are the costs and consequences of providing the subsidies and welfare?

Equilibrium and corrective tax, The marginal external cost associated with ...

The marginal external cost associated with the emissions of sulfur dioxide is estimated to be $30 per pound of this chemical per year. Assume that each ton of steel produced per ye

2010 State of the World: Transforming Cultures from Consumer, Read the titl...

Read the titled book 2010 State of the World: Transforming Cultures from Consumerism to Sustainability written by the Worldwatch Institute.Learn through their findings valuable inf

Model without stock effects, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

What is meaning of market economy, The meaning of a market economy is in wh...

The meaning of a market economy is in which the decision and production are prepared. The consumption of goods services are based on voluntary swap in markets.

Foreign trade and capital flow problem, In the wake of the Asian financial ...

In the wake of the Asian financial crisis, policymakers, governments, and academics around the world are busy devising ways to reform the global financial architecture. The plethor

Is heterogeneity the sole cause of conflict of interests, Q. Is Heterogenei...

Q. Is Heterogeneity the sole cause of conflict of interests? Explain heterogeneity as a cause of variation of aspirations of agents leading to formation of various special inte

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd