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Your money or your life: A prescriptive model for health, safety, and consumption decisions

Publication ,  Journal Article
Smith, JE; Keeney, RL
Published in: Management Science
September 1, 2005

In this paper we develop a conceptual framework and model for valuing risks to an individual's health and life and to support decision making about investments in health, quality of life, and safety. Our treatment of health risks in the model builds on the popular quality-adjusted-life-year (QALY) framework that balances health quality and length of life issues. We extend this framework to consider financial concerns as well as health quality and length of life. Our model considers uncertainty in income and health and incorporates the decision maker's ability to adjust consumption over time in response to changes in expectations about health and income. We use this model to study the optimal tradeoffs between financial gains or losses and improvements or reductions in health or longevity and apply it in two example medical decision problems. © 2005 INFORMS.

Duke Scholars

Published In

Management Science

DOI

EISSN

1526-5501

ISSN

0025-1909

Publication Date

September 1, 2005

Volume

51

Issue

9

Start / End Page

1309 / 1325

Related Subject Headings

  • Operations Research
  • 46 Information and computing sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences
 

Citation

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Chicago
ICMJE
MLA
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Smith, J. E., & Keeney, R. L. (2005). Your money or your life: A prescriptive model for health, safety, and consumption decisions. Management Science, 51(9), 1309–1325. https://doi.org/10.1287/mnsc.1050.0402
Smith, J. E., and R. L. Keeney. “Your money or your life: A prescriptive model for health, safety, and consumption decisions.” Management Science 51, no. 9 (September 1, 2005): 1309–25. https://doi.org/10.1287/mnsc.1050.0402.
Smith JE, Keeney RL. Your money or your life: A prescriptive model for health, safety, and consumption decisions. Management Science. 2005 Sep 1;51(9):1309–25.
Smith, J. E., and R. L. Keeney. “Your money or your life: A prescriptive model for health, safety, and consumption decisions.” Management Science, vol. 51, no. 9, Sept. 2005, pp. 1309–25. Scopus, doi:10.1287/mnsc.1050.0402.
Smith JE, Keeney RL. Your money or your life: A prescriptive model for health, safety, and consumption decisions. Management Science. 2005 Sep 1;51(9):1309–1325.

Published In

Management Science

DOI

EISSN

1526-5501

ISSN

0025-1909

Publication Date

September 1, 2005

Volume

51

Issue

9

Start / End Page

1309 / 1325

Related Subject Headings

  • Operations Research
  • 46 Information and computing sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences