Other recent attempts to analyze dependence of utility functions on health states
have utilized different empirical approaches than eliciting multiple risk-money combi-
nations on a constant expected utility locus. Lillard and Weiss (1997) explore consump-
tion profiles over time and find that the marginal utility of consumption in the healthy
state exceeded that when ill. Such a result could occur either if sickness is equivalent to
a loss of income or if the monetary costs of sickness are not borne by insurance, as they
are in the workers’ compensation case. Sojourner (2010) utilized statistical bounding
techniques to explore ...
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