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Health Care Costs

from a Dutch study:

"Preventing obesity and smoking can save lives, but it doesn't save money, researchers reported Monday. It costs more to care for healthy people who live years longer, according to a Dutch study that counters the common perception that preventing obesity would save governments millions of dollars. "It was a small surprise," said Pieter van Baal, an economist at the Netherlands' National Institute for Public Health and the Environment, who led the study. "But it also makes sense. If you live longer, then you cost the health system more."In a paper published online Monday in the Public Library of Science Medicine journal, Dutch researchers found that the health costs of thin and healthy people in adulthood are more expensive than those of either fat people or smokers....Ultimately, the thin and healthy group cost the most, about $417,000, from age 20 on. The cost of care for obese people was $371,000, and for smokers, about $326,000. The results counter the common perception that preventing obesity will save health systems worldwide millions of dollars."

read more here.

If the goal is reduce government expenses they healthy lifestyles are bad.

If Cigarettes Cost $222 a Pack, Would People Quit?

THE MORTALITY COST TO SMOKERS
W. Kip Viscusi
Joni Hersch

This article estimates the mortality cost of smoking based on the first labor market estimates of the value of statistical life by smoking status. Using these values in conjunction with the increase in the mortality risk over the life cycle due to smoking, the value of statistical life by age and gender, and information on the number of packs smoked over the life cycle, produces an estimate of the private mortality cost of smoking of $222 per pack for men and $94 per pack for women in 2006 dollars, based on a 3 percent discount rate. At discount rates of 15 percent or more, the cost decreases to under $25 per pack.

read the article

Economics and Advertising

from Greg Mankiw

Cost Benefit Analysis: Daylight Savings Time

It also means that pedestrians walking around dusk are nearly three times more likely to be struck and killed by cars than before the time change, the researchers calculate.

Ending daylight saving time translates into about 37 more U.S. pedestrian deaths around 6 p.m. in November compared to October, the professors report...

Fischbeck and Gerard conducted a preliminary study of seven years of federal traffic fatalities and calculated risk per mile walked for pedestrians. They found that per-mile risk jumps 186 percent from October to November, but then drops 21 percent in December...

The reverse happens in the morning when clocks are set back and daylight comes earlier. Pedestrian risk plummets, but there are fewer walkers then, too. The 13 lives saved at 6 a.m. don't offset the 37 lost at 6 p.m., the researchers found.

The risk for pedestrian deaths at 6 p.m. is by far the highest in November than any other month, the scientists said. The danger declines each month through May.

The Insurance Institute for Highway Safety of Arlington, Virginaia, in earlier studies found the switch from daylight saving time to standard time increased pedestrian deaths. Going to a year-round daylight saving time would save about 200 deaths a year, the institute calculated, said spokesman Russ Rader...

read the CNN news story

Cost -Benefit Analysis: Michael Vick Edition

"Falcons quarterback Michael Vick's guilty plea on federal dogfighting charges could wind up costing him well over $100 million.

Vick will lose $71 million in salary over the next seven years if the Falcons terminate his contract, which legal experts say the team has the right to do.

He also figures to lose as much as $50 million in endorsement income over the next decade, according to an estimate by the University of Oregon's Warsaw Sports Marketing Center.

Then add to Vick's costs the legal fees and other possible fallout from the case."

full story