Discount Rate for Health Benefits and the Value of Life in India

Table 2

Two-stage least square estimates of implicit price equations.

Variables	(1)	(2)	(3)	(4)
Constant	0.1284 (6.786)	0.1224 (6.022)	0.1273 (6.912)	0.1212 (6.225)
Life years lost (−𝑟^∗)	−0.0030 (4.760)	−0.0028 (4.031)	—	—
Discount rate ( 𝑟)	0.029	0.0272	—	—
−𝑟^∗ × region 1	—	—	−0.0048 (7.009)	−0.0052 (7.140)
𝑟 in region 1	—	—	0.047	0.051
−𝑟^∗ × region 2	—	—	−0.003 (4.915)	−0.0026 (4.051)
𝑟 in region 2	—	—	0.030	0.026
−𝑟^∗ × Region 3	—	—	−0.0026 (4.219)	−0.0024 (3.705)
𝑟 in region 3	—	—	0.025	0.024
−𝑟^∗ × region 4	—	—	−0.0012 (1.654)	−0.0010 (0.488)
𝑟 in region 4	—	—	0.012	0.010
High school education	0.0010 (0.099)	−0.0024 (0.218)	0.0073 (0.751)	0.0055 (0.529)
Higher secondary education	0.0066 (0.738)	0.0000 (0.005)	0.0103 (1.197)	0.0046 (0.506)
College education	0.0014 (0.099)	−0.0063 (0.403)	0.0057 (0.399)	−0.0014 (0.094)
Indicator for own house	0.0130 (1.810)	0.0169 (2.197)	0.0084 (1.202)	0.0105 (1.423)
Union status	0.0139 (1.882)	0.0177 (2.235)	0.0053 (0.737)	0.0062 (0.807)
Backward community	0.0104 (1.406)	0.0140 (1.770)	0.0096 (1.346)	0.0125 (1.647)
Private job	0.0297 (2.813)	0.0260 (2.290)	0.0345 (3.324)	0.0329 (2.999)
𝑅^2 [Adjusted 𝑅^2]	0.085 [0.070]	0.076 [0.061]	0.151 [0.133]	0.170 [0.152]

Note: Mean values are 25.058 for life years lost variable and 0.1035 for estimated wage-risk trade-off from column 2 of Table 1 (0.1028 from column 3 of Table 1). Absolute 𝑡 values are in parentheses.