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Main arrow Archive of previous Issues arrow ╣6 2014 (40) arrow Some aspects of economic evaluation of health loss due to mortality at the Russian Far East
Some aspects of economic evaluation of health loss due to mortality at the Russian Far East Print
Wednesday, 25 February 2015

Sukhoveeva A.B., Komarova T.M.
Institute for Complex Analysis of Regional Problems, Far Eastern Branch, Russian Academy of Sciences

Contacts: Tatyana Komarova - This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

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 źhigh╗ 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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