We construct an endogenous risk model of the influence of more precise hazard information on the parental demand for child health. A 256-observation data set is used to estimate the marginal value to parents and to society of risk information about the future consequences of children's body lead burdens. Our results indicate that the social value of risk information greatly exceeds the cost of providing it and that parents will purchase too little of this information.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics