More about the work by Erica Johnson and her colleagues
How could this article contribute to our student's understanding of the topic? In the classroom, I find this article is a great starting point for discussion in the MBA health economics course. First, we discuss the concept of demand for health risk reductions and how a one-size-fits-all demand measure is used in benefit-cost analysis. Then we discuss possible drawbacks to this measure, which include assuming the demand for health risk reductions is the same for all people. We talk about how the demand for health risk reductions might vary by age, gender, income, and number and age of children since the demand for most other goods varies in these dimensions. We also discuss the political implications of using different values of demand for different groups of people in policy-making.
What are the real-world applications of this article? This article is useful from a policy perspective since it deals with an important component in benefit-cost analysis. It is important for researchers and policy-makers to know what the demand is for these environmental, health, and safety policies that reduce health risks. This research gives more insight into the demand for these policies.
How does the information in this article benefit people in organizations? Since our tax dollars go into paying for these environmental and health policies, we need an accurate measure of how much benefit society derives from these policies. This research helps provide more detailed information on the demand for health risk reductions. If people do not benefit from these policies that reduce health risks, then we should be spending our tax dollars on something else (like education, defense, or paying lower taxes).
Citation: Cameron, Trudy Ann, J.R. DeShazo, and Erica H. Johnson. (2010) "The effect of children on adult demands for health-risk reductions" Journal of Health Economics .Vol. 29, Issue 3, pp.364-376.