The Marginal Cost of Mortality Risk Reduction: Evidence from Housing Markets

43 Pages Posted: 3 Jan 2022 Last revised: 10 Jun 2022

See all articles by Kelly C. Bishop

Kelly C. Bishop

Arizona State University

Nicolai Kuminoff

Arizona State University (ASU) - Economics Department

Sophie Mathes

FGV EPGE

Alvin Murphy

Arizona State University (ASU) - Economics Department

Date Written: December 2021

Abstract

We provide the first evidence that spatial variation in all-cause mortality risk is capitalized into US housing prices. Using a hedonic framework, we recover the annual implicit cost of a 0.1 percentage-point reduction in mortality risk among older Americans and find that this figure is both relatively low and decreasing in age, from $1,346 for a 67 year old to $246 for an 87 year old. These estimates are one-fifth of the size of comparable estimates found in the labor market, suggesting that the housing market provides an alternative, substantially cheaper channel to reducing mortality risk.

Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Suggested Citation

Bishop, Kelly C. and Kuminoff, Nicolai and Mathes, Sophie and Murphy, Alvin, The Marginal Cost of Mortality Risk Reduction: Evidence from Housing Markets (December 2021). NBER Working Paper No. w29622, Available at SSRN: https://ssrn.com/abstract=3998795

Kelly C. Bishop (Contact Author)

Arizona State University ( email )

Box 879801
Tempe, AZ 85287-3806
United States

Nicolai Kuminoff

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States

Sophie Mathes

FGV EPGE ( email )

Praia de Botafogo
190/1100
Rio de Janeiro
Brazil

Alvin Murphy

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
5
Abstract Views
82
PlumX Metrics