According to the Australian Institute of Health and Welfare, Australians born today live more than 20 years longer than our counterparts a century ago. This gain in our longevity has been achieved through a variety of incremental improvements in health and aged care expenditure, occupational safety, environmental interventions and technological advances. Such investments reflect the value we place on life, health and wellbeing.
Health life is a unique and exceptional commodity. It does not fit neatly into the traditional neoclassical framework because it is a prerequisite to deriving utility from all economic activities, including income from production and utility from consumption.
This report provides a comprehensive overview of the available Australian and international literature presenting the microeconomic framework and different methodologies for valuing life.