Working Paper: NBER ID: w13599
Authors: W. Kip Viscusi; Joni Hersch
Abstract: This article estimates the mortality cost of smoking based on the first labor market estimates of the value of statistical life by smoking status. Using these values in conjunction with the increase in the mortality risk over the life cycle due to smoking, the value of statistical life by age and gender, and information on the number of packs smoked over the life cycle, produces an estimate of the private mortality cost of smoking of $222 per pack for men and $94 per pack for women in 2006 dollars, based on a 3 percent discount rate. At discount rates of 15 percent or more, the cost decreases to under $25 per pack.
Keywords: Mortality cost; Smoking; Value of statistical life; Hedonic wage model
JEL Codes: I12; I18; J17
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Smoking (L66) | Increased mortality risk (I12) |
| Increased mortality risk (I12) | Mortality costs (VSL) (J17) |
| Smoking (L66) | Mortality costs (VSL) (J17) |
| VSL (J17) | Economic valuation of mortality costs (J17) |
| Age-specific VSL (J17) | Accurate assessment of mortality costs (J17) |