An Analysis of Economic Value of the Old-age Preparation Service
10.4332/KJHPA.2018.28.1.77
- Author:
Kyung Ae AHN
1
;
Hae Chun RHEE
Author Information
1. Department of International Trade and Commerce, Soonchunhyang University, Asan, Korea. kaan@sch.ac.kr
- Publication Type:Original Article
- Keywords:
Old-age preparation service;
Economic benefit value;
Contingent valuation method
- MeSH:
Methods
- From:Health Policy and Management
2018;28(1):77-86
- CountryRepublic of Korea
- Language:Korean
-
Abstract:
BACKGROUND: The purpose of this study is to emphasize the importance and necessity of the government's old-age preparation service by measuring the economic value of the old-age service and the policy direction and policy implications of the government's old-age preparation service project. METHODS: Contingent Valuation Method (CVM) was used as an analytical method. CV methodology was used to calculate the Willingness to pay (WTP) for old-age preparation service and its value was estimated and the economic benefit of the project was estimated. RESULTS: As a result of the analysis, the average monthly payment amount for the old service was calculated as 5,100 won, and the annual average payment amount was estimated to be 61,197.1 won. CONCLUSION: The present value of the benefit for 10 years with the discount rate of 5.5% is 484,651 won. Based on the value of peruser benefit, the total benefit value calculation result of the old-age preparation service considering the Willingness to pay for the next 10 years shows that the total benefit value of the old service, which occurs during the period from 2016 to 2025(10 years) was estimated at 415.1 billion won. As a result of calculating the benefit for each scenario, the present value of basic service is higher in all scenarios than the linked service.
