Property Values, and the Value of Health Household Health Production

Although public policies and other external factors are important determinants of health, health remains at least partially under the control of the individual consumer. By analyzing the decisions consumers make when faced with trade-offs between health and other economic goods, it is sometimes possible to infer the value of health to the consumer. This chapter reviews two approaches used in empirical studies that concern such trade-offs: the household health production framework, and the hedonic analysis of housing markets. The main focus is on developing useful empirical estimates of the value of health based on these approaches.

Household Health Production, Property Values, and the Value of Health Chapter