Skip to main content

The Marginal Cost of Saving a Life in Health Care: Age, Gender and Regional Differences in Switzerland

Summary

This paper estimates the marginal cost of saving a life using age- and gender-specific health care expenditures and mortality rates of the 26 Swiss cantons for the period 1997 to 2006. It shows almost triple the marginal cost of saving a life for women as compared to men, reflecting a lower marginal elasticity of medical inputs, a lower mortality rate and higher spending on health care for women. Medical technology does not differ across cantons while the marginal cost of saving a life does. Wealthy cantons spend more on saving a life at the margin and show a smaller gender gap in longevity.

References

  • Becker, Gary S., Thomas J. Philipson, and Rodrigo R. Soares (2005), “The Quantity and Quality of Life and the Evolution of World Health Inequality”, American Economic Review, 95, pp. 277–291.

    Article  Google Scholar 

  • Costa, Dora L., and Matthew E. Kahn (2004), “Changes in the Value of Life, 1940–1980”, Journal of Risk and Uncertainty, 29(2), pp. 159–180.

    Article  Google Scholar 

  • Crivelli, Luca, Massimo Filippini, and Ilaria Mosca (2006), “Federalism and Regional Health Care Expenditures: An Empirical Analysis for the Swiss Cantons”, Health Economics, 15, pp. 535–541.

    Article  Google Scholar 

  • Cutler, David M., and Marc McClellan (2001), “Is Technological Change in Medicine Worth It?”, Health Affairs, 20(5), pp. 11–29.

    Article  Google Scholar 

  • Cutler, David M., Angus S. Deaton, and Adriana Lleras-Muney (2006), “The Determinants of Mortality”, Journal of Economic Perspectives, XX, pp. 97–120.

    Article  Google Scholar 

  • Felder, Stefan (2006a), „Lebenserwartung, Medizinischer Fortschritt und Gesundheitsausgaben: Theorie und Empirie“, Perspektiven der Wirtschaftspolitik, 7 (Special issue), pp. 49–73, 2006.

    Article  Google Scholar 

  • Felder, Stefan (2006b), “The Longevity Gender Gap: Explaining the Difference between Singles and Couples”, Journal of Population Economics, 19(3), pp. 543–557.

    Article  Google Scholar 

  • Hall, Robert E., and Charles I. Jones (2007), “The Value and the Rise in Health Spending”, The Quarterly Journal of Economics, 122(1), pp. 39–72.

    Article  Google Scholar 

  • Jones-Lee, Michael W. (1976), The Value of Life: An Economic Analysis, Chicago: University of Chicago Press.

    Google Scholar 

  • Leung, Michael C. M., Jie Zhang, and Junsen Zhang (2004), “An Economic Analysis of Life Expectancy by Gender with Application to the United States”, Journal of Health Economics 23(4), pp. 737–759.

    Article  Google Scholar 

  • Murphy, Kevin M., and Robert H. Topel (2006), “The Value of Health and Longevity”, Journal of Political Economy 114(5), pp. 871–904.

    Article  Google Scholar 

  • OECD (2008), OECD Health Data, OECD, Paris.

    Google Scholar 

  • Posner, Richard (1995), Aging and Old Age, University Press, Chicago.

    Google Scholar 

  • Pratt, John W., and Richard J. Zeckhauser (1996), “Willingness to Pay and the Distribution of Risk and Wealth”, Journal of Political Economy, 104, pp. 747–763.

    Article  Google Scholar 

  • Rosen, Sherwin (1988), “The Value of Changes in Life Expectancy”, Journal of Risk and Uncertainty, 1, pp. 285–304.

    Article  Google Scholar 

  • Schleiniger, Reto, Tilman Slembeck, and Jonas Blöchliger (2006), “Kantonale Preis- und Mengenindizes der OKP-Gesundheitsleistungen — Methode und Resultate”, mimeo, Zentrum für Wirtschaftspolitik, Zürcher Hochschule Winterthur.

  • Viscusi, W. Kip., and Joseph E. Aldy (2003), “The Value of Saving a Life: A Critical Review of Market Estimates Throughout the World”, Journal of Risk and Uncertainty, 27, pp. 5–76.

    Article  Google Scholar 

  • Wooldridge, Jeffrey M. (2002), Econometric Analysis of Cross Section and Panel Data, Cambridge (Massachusetts) et al.

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Open Access This article is distributed under the terms of the Creative Commons Attribution 2.0 International License ( https://creativecommons.org/licenses/by/2.0 ), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Reprints and permissions

About this article

Cite this article

Felder, S., Werblow, A. The Marginal Cost of Saving a Life in Health Care: Age, Gender and Regional Differences in Switzerland. Swiss J Economics Statistics 145, 137–153 (2009). https://doi.org/10.1007/BF03399278

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF03399278

JEL-Classification

Keywords