Previous Article
Next Article

# The Value of Health and Longevity

#

Kevin M. Murphy and Robert H. Topel

University of Chicago and National Bureau of Economic Research

DOI: http://dx.doi.org/10.1086/508033
Abstract

We develop a framework for valuing improvements in health and apply it to past and prospective reductions in mortality in the United States. We calculate social values of (i) increased longevity over the twentieth century, (ii) progress against various diseases after 1970, and (iii) potential future progress against major diseases. Cumulative gains in life expectancy after 1900 were worth over $1.2 million to the representative American in 2000, whereas post‐1970 gains added about $3.2 trillion per year to national wealth, equal to about half of GDP. Potential gains from future health improvements are also large; for example, a 1 percent reduction in cancer mortality would be worth $500 billion.

# TOOLS

- Permissions

# SHARE

# ARTICLE CITATION

Kevin M. Murphy and Robert H. Topel , "The Value of Health and Longevity," Journal of Political Economy 114, no. 5 (October 2006): 871-904.

DOI: 10.1086/508033

# MOST READ

Most read within the past 12 months

- Something to Talk About: Social Spillovers in Movie Consumption
  Gilchrist et al.
  Published Online: Oct 2016
- Does International Child Sponsorship Work? A Six-Country Study of Impacts on Adult Life Outcomes
  Wydick et al.
  Published Online: Apr 2013
- Ethnic Inequality
  Alesina et al.
  Published Online: Apr 2016
- How Effective Is the Minimum Wage at Supporting the Poor?
  MaCurdy
  Published Online: Apr 2015
- Booms and Banking Crises
  Boissay et al.
  Published Online: Apr 2016