A note on parental and child risk valuation

The paper develops a model that allows the estimation of parent’s valuation of own and child health, in an endogenous risk framework, where parents can employ multiple activities to protect themselves and their children from a health risk. These risk-reducing activities may differ in their effectiveness and their intensity of use. We suggest how to estimate the parent’s ex ante marginal willingness-to-pay for a reduction in the ambient level of health risk, unencumbered by expected utility terms. Copyright Springer Science+Business Media, Inc. 2007