Value of statistical life year in extreme poverty: A randomized experiment of measurement methods in rural Burkina Faso

Stefan T. Trautmann*, Yilong Xu, Christian Koenig-Kersting, Bryan N. Patenaude, Guy Harling, Ali Sie, Till Baernighausen

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Background Value of a Statistical Life Year (VSLY) provides an important economic measure of an individual's trade-off between health risks and other consumption, and is a widely used policy parameter. Measuring VSLY is complex though, especially in low-income and low-literacy communities. Methods Using a large randomized experiment (N = 3027), we study methodological aspects of stated-preference elicitation with payment cards (price lists) in an extreme poverty context. In a 2 x 2 design, we systematically vary whether buying or selling prices are measured, crossed with the range of the payment card. Results We find substantial effects of both the pricing method and the list range on elicited VSLY. Estimates of the gross domestic product per capita multiplier for VSLY range from 3.5 to 33.5 depending on the study design. Importantly, all estimates are economically and statistically significantly larger than the current World Health Organization threshold of 3.0 for cost-effectiveness analyses. Conclusions Our results inform design choice in VSLY measurements, and provide insight into the potential variability of these measurements and possibly robustness checks.
Original languageEnglish
Article number45
JournalPopulation Health Metrics
Volume19
Issue number1
DOIs
Publication statusPublished - Nov 2021

Keywords

  • Value of statistical life year
  • Health risks
  • Cost-effectiveness
  • Payment cards
  • Price lists
  • Extreme poverty
  • Burkina Faso
  • WILLINGNESS-TO-PAY
  • CONTINGENT VALUATION
  • MORTALITY
  • COST
  • RISK
  • STATES

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