Statistical Value of Life and Health Capital in Iran

The purpose of this study is to introduce and assess various measures of statistical value of life and introduce a way to measure health capital for 19 age cohorts throughout 1996-2015. To do so, we applied a dynamic planning approach and used the data on Iranian household budget survey. The main results show that until 2009, adding a new member to the population of newborns was more socially valued, but after 2009, investment on the health of the newborn had more value. This study concludes that increasing the monetary value of an age group does not necessarily mean that the investment on the health of that group is justifiable. Health capital is estimated to at least 1. 5 in 1996 and at most 8 million U. S $ in 2015. Despite the very strong association between statistical value of life and health capital, this study shows there is no reason why an individual's earnings cannot exceed or be inferior the value of life over a lifetime. Each criteria calculated in this study could have policy application according to the purpose of the social policymaker.