This paper proposes a method to evaluate health losses or gains by looking at the impact on well-being of a change in … health status. The paper presents estimates of the equivalent income change that would be necessary to change general … satisfaction with life to the same extent as a change in health satisfaction would do. In other words, the income equivalent of …

physical handicaps. The analysis is based on an individual self-rating health satisfaction question asked in the British … Household Panel Survey data set. This question provides a natural cardinalization of health utility .Our method is a refinement … of the method introduced by Cutler and Richardson (1997). We extend their approach in two directions. First, the health …