Browsing by Subject "Standard gamble"

Now showing 1 - 2 of 2
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    Lowering the floor of the SF-6D Utility function: an application using Spanish data
    (Fundación BBVA, 2010-07) Abellán Perpiñán, José María; Sánchez Martínez, Fernando Ignacio; Martínez Pérez, Jorge Eduardo; Méndez Martínez, Ildefonso; Economía Aplicada
    This paper presents a new scoring algorithm for the SF-6D, one of the most popular preference-based health status measures. Previous algorithms suffer from a phenomenon called the „floor‟ effect (i.e., lack of sensitivity of the instrument for detecting health gains of individuals whose baseline health is poor). Our algorithm expands the range of utility scores in such a way that the „floor‟ effect vanishes. We get such a wider range thanks to the use of a lottery equivalent method through which preferences from a representative sample of Spanish general population are elicited. -----------
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    Open Access
    The value of statistical life in the context of road safety: new evidence on the contingent valuation/standard gamble chained approach
    (Springer, 2021-09-22) Sánchez Martínez, Fernando Ignacio; Martínez Pérez, Jorge Eduardo; Abellán Perpiñán, José María; Pinto Prades, José Luis; Economía Aplicada
    This study estimates the value of statistical life (VSL) on a road traffic accident using the Contingent Valuation/Standard Gamble chained approach. A large representative sample (n = 2020) is used to calculate a VSL for use in the evaluation of road safety programmes in Spain. The paper also makes some methodological contributions, by providing new evidence about the consistency of the chained method. Our main results are: (1) A range from 1.3 million euro to 1.7 million euro is obtained for the VSL in Spain in the context of road accidents. This range is in line with the values used in the same context in other European countries, although it is lower than those obtained in different contexts and with other methods. (2) The method performs much better in terms of scope sensitivity than the traditional contingent valuation method, which asks subjects about their willingness to pay for very small reductions in the risk of death. (3) We introduce a new ‘indirect’ chaining approach which reduces (but does not remove) the disparity between direct and indirect chaining approaches. More extreme VSL estimates are still obtained with this indirect method than with the direct one. (4) VSL estimates depend on the injury used. More specifically, we obtained a lower VSL when a more severe injury is used. (5) Framing the risk of death in the modified standard gamble question as “10n in 10,000” instead of “n in 1000” influences the value of VSL. We attribute this effect to the Ratio Bias.