Sukhoveeva A.B., Komarova T.M.
Institute for Complex Analysis of Regional Problems, Far Eastern Branch, Russian Academy of Sciences
Contacts: Tatyana Komarova -
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Abstract. From mid last decade, Russia has been
reducing rates of population decline as a result of increased fertility
and reduced mortality. However, the problem of high mortality remains
relevant for both the entire country and its regions, making a
significant contribution into average life expectancy. Mortality bears a
huge social cost in form of non-renewable demographic loss, as well as
economic damage in form of unproduced gross domestic product.
The purpose of this paper is economic evaluation of
mortality in the regions of the Russian Far East in 2010 with due regard
to the average value of a human life. The study is based on the concept
of the human capital considering health as one of the main conditions
for territorial social and economic development.
Methods and data. Shmakov's technique was used to calculate the average value of a human life and economic damage.
Cost per one year of statistical human life was calculated with due
regard to average life expectancy in a region, and also regional
coefficients and premium envisaged by the Labour code of the Russian
Federation.
To calculate economic damage due to mortality in the Far East
regions, besides actual economic loss (including missed profit caused by
underproduction of gross regional product due to workforce mortality,
allowance on death and other payments to the family), the authors also
corrected calculation for cost of one lost year (or years) of
statistical human life.
The authors used official statistics of the Federal State Statistics Service and expert evaluation as baseline data.
Conclusions. It was found out that the higher
investments into human capital and pension benefits as well as the
higher life expectancy the higher the average value of a human life.
Types of regions of the Russian Far East were defined according to the
amount of economic loss due to mortality including cost per one lost
year of statistical human life and per capita gross regional product in
2010. The majority of subjects of the district belongs to regions with
«high» economic loss due to mortality (2.0-2.6% of gross regional
product).
Keywords. Economic damage; mortality; gross regional product; Russian Far East.
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