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16. Essays on the Value of a Statistical Life

Author

Kochi, Ikuho

Subjects
health care economics and organizations
Abstract

This dissertation addresses two important issues in the literature estimating the Value of a Statistical Life. The first issue is the potential endogeneity bias in cross-section hedonic wage models. The second issue is the transferability of the VSL between different policy contexts. To address the first issue, we estimate cross-section and panel hedonic wage models to identify the bias due to the time-invariant worker heterogeneity. We also consider potential endogeneity bias due to measurement error associated with risk variable, time-variant worker heterogeneity and simultaneity between wage and risk in panel models. We obtain labor market data from the 1996 Survey of Income and Program Participation panel, and occupational fatal risk data from Scotton (2000). We find that the cross-section hedonic wage model is significantly biased upward due to unobserved time-invariant worker heterogeneity, but not from time-variant worker heterogeneity or simultaneity between wage and risk. Our results are sensitive to the inclusion of industry variables, but not sensitive to the sample of workers used in estimation. To address the second issue, we examine whether or not workers and firms differentiate heterogeneous risks to determine the risk-wage compensation levels. We focus on two very different fatal risks in terms of the degree of workers’ control over the risk and the degree of dread associated with risk: violent assaults and risks related to non-violent events. We use occupational drivers to mitigate potential unobserved heterogeneity of job characteristics and measurement error associated with risk variables. The labor market data comes from the basic CPS, and the occupation-geographic specific risk rates for each cause of death are created from the non-public Census of Fatal Occupational Injuries. We find that occupational drivers require larger compensation to accept a marginal increase of violent risk as compared to non-violent risk. This is true for both fatal and non-fatal risks. Our results are quite robust. This study suggests that current direct use of VSL obtained from hedonic wage studies in benefit estimation of various governmental programs should be reconsidered.

Published
2007
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18. Political competition and the (in)effectiveness of redistribution in a federation

Author

Kochi, Ikuho, Ponce Rodríguez, Raúl A., Kochi, Ikuho, and Ponce Rodríguez, Raúl A.

Abstract

En este ensayo se analizan las condiciones económicas y políticas en las que la efectividad de la redistribución pública puede ser baja en una federación. En nuestra economía el gobierno central redistribuye el ingreso mientras que los gobiernos locales proveen bienes públicos que benefician, primordialmente, a individuos de bajo ingreso. Si el gasto público local disminuye como respuesta a la política de redistribución del gobierno central entonces esta política podría ser inefectiva en redistribuir el bienestar de la sociedad. En este ensayo analizamos este tema. Los principales resultados de este estudio, son: primero, si el partido en el gobierno local de alguna entidad representa una coalición de votantes con un ingreso laboral por debajo del ingreso promedio de la economía, y si la transferencia neta agregada de recursos derivada de la política redistributiva del gobierno central es negativa para los residentes de esta localidad, entonces el gasto publico decrece en esta entidad si es que el gobierno central implementa una política de redistribución del ingreso; segundo, si los gobiernos locales son controlados por partidos políticos que representan a votantes con una elevada utilidad marginal de ingreso y un ingreso laboral por debajo de la media nacional, entonces la redistribución pública induce a todos los gobiernos locales a reducir el gasto público local.

Published
2012

24. THE STRUCTURE OF POLITICAL POWER AND REDISTRIBUTION IN ECONOMIES WITH MULTIPLE GOVERNMENTS.

Author

Ponce Rodriguez, Raúl A., Kochi, Ikuho, and Gutierrez Casas, Luis E.

Subjects
POWER (Social sciences), FEDERATIONS, POLITICAL doctrines, FEDERAL government, WELFARE economics, INCOME inequality
Abstract

Copyright of Estudios Económicos is the property of El Colegio de Mexico AC and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Published
2015

25. Interrupción estudiantil en la década 2000: el caso UACJ.

Author

Hernández, Myrna Limas, Kochi, Ikuho, and Castañeda, Margarita Grajeda

Subjects
*EDUCATION research, *COLLEGE enrollment, *UNIVERSITY & college admission, *UNDERGRADUATE programs, *HIGHER education
Abstract

The opening of the access to education worldwide implies a positive trend in the enrolment of students. The case of the undergraduate studies in Mexico is no exception. Ironically, increases in enrollment translate into an increase in the dropout rate that starts with the interruption of studies. While it is recognized that the individual characteristics of each student set the tone for the academic trajectories, there is a persistent question about what factors differ between an individual that interrupts his/her studies from one who does not. This article analyzes the determinant of interruption decision among undergraduate programs of the Universidad Autónoma de Ciudad Juárez (UACJ) in the first decade of 2000 by incorporating the unique characteristics of the University and using the panel data analysis. [ABSTRACT FROM AUTHOR]

Published
2013
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26. Private and Pareto Efficient Public Transfers.

Author

Kochi, Ikuho and Ponce Rodríguez, Raúl Alberto

Subjects
*PARETO optimum, *INCOME redistribution, *INCOME tax, *REMITTANCES, *PUBLIC finance, *GOVERNMENT policy
Abstract

Private transfers are a market mechanism that changes the inequality in the distribution of income. Should the government increase or reduce the size of Pareto efficient public transfers after observing an increase in inter vivos private transfers that reduces (increases) inequality in the distribution of income? In this paper we provide an answer to this question. Our analysis identifies conditions in which private transfers change income inequality and crowd out government's transfers in a targeted redistributive program, but increase the size of public transfers in a broad base redistributive program. [ABSTRACT FROM AUTHOR]

Published
2011

27. DO REMITTANCES CROWD OUT THE GOVERNMENT'S REDISTRIBUTIVE POLICY?

Author

KOCHI, IKUHO and RODRÍGUEZ, RAÚL ALBERTO PONCE

Subjects
REMITTANCES, INCOME inequality, HOUSEHOLDS, ECONOMICS, POLITICAL economic analysis
Abstract

In this paper, we develop a political economy model with a voting equilibrium to analyze the impact of remittances in the government's redistributive policy. Remittances affect the distribution of income and the households' demand for public redistribution. In this paper we consider the impact of remittances on two types of redistributive programs: a universal and a targeted transfer program. For an economy with targeted public transfers, we identify conditions in which an increase in remittances crowds out the social transfers of the government. If the redistributive program is universal then an increase in remittances actually increases the size of the government's transfers. [ABSTRACT FROM AUTHOR]

Published
2010
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