Download A VALUE OF LIFE CALCULATION MODEL APPROACH

A VALUE OF LIFE CALCULATION MODEL APPROACH DEPENDING ON NET PRESENT
VALUE CALCULATED WITH ECONOMIC AND DEMOGRAPHIC DATA FOR FRANCE,
GERMANY, ITALY, SPAIN AND UNITED KINGDOM
Tuna E.1, Yenilmez FB.2, Koçkaya G.3
1Polar Health Economics and Policy Consultancy, Ankara, Turkey 2, Akıl Consultancy, London, UK,
3Health Economics and Policy Association, Ankara, Turkey,
OBJECTIVES
Value of life is a marginal benefit of preventing death in a given
Figure 1: Estimated produced economic value for a life time
for France, Germany, Italy, Spain and UK ($)
lifetime. Human life is priceless. However, under limited supply of
resources or infrastructure, it is important to calculate value of life.
The Human Capital Theory based on investments to human`s health
which can reduce morbidity and mortality, but also improve macro
and micro economic outcomes of societies. The aim of this analysis
$467.388
$500.000
$377.675
$400.000
$300.000
$200.000
$151.797
$178.968
$100.000
is to conduct a model for calculating value of life of countries
$France
depends on The Human Capital Theory for France, Germany, Italy,
Spain and United Kingdom.
$358.766
Germany
Italy
Spain
UK
The estimated values for France, Germany, Italy, Spain and United
METHODS
Kingdom were 10.98, 8.12, 4.22, 5.99 and 8.58 times of each countries
GDP per capita, respectively. Estimated produced economic value for
Net present value (NPV) of the taxes and spending of government
each countries were negative in first 3. Decades and changed positive
were calculated depending on population demographics and
with 4. Decades.
economic data as population distribution by age, employment
compliance by age, average age of school enrollment, average
Figure 2: Estimated produced economic value for a life time in terms of
GDP for France, Germany, Italy, Spain and UK
12
schooling years, average year of retirement, unemployment rate,
10
entry annual wage, healthcare spending per capita, education
for a life time term for each country were assumed as the value of
life. In additional, each decades NPV were calculated. The economic
data for the model was taken from World Bank, UNESCO, OECD and
GDP
spending per capita, etc. The estimated produced economic value
8
6
4
2
0
WHO.
France
Germany
Italy
Spain
UK
RESULTS
CONCLUSION
Estimated produced economic value for a life time value for France,
The value of life based on a hypothetical model based on NPV
Germany, Italy, Spain and United Kingdom were calculated as US$
with taxes and spending of government for each individual for
467.388, US$ 377.675, US$ 151.797, US$ 178.968, US$ 358.766,
a life-term.
respectively (Figure 1).
Model approaches includes value of life for each decades of
age which can guide for marginal benefit of preventing premature deaths.
This may be a guide for health policy authorities to make
prioritization for treatment options for different decades.