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Keith Vodden Dr. Douglas Smith - Transports Canada

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Appendix C—The Value of Human Consequences using Discounted Future Earnings<br />

Eh s (n)<br />

g<br />

r<br />

= proportion of the population of sex s and age n that are<br />

keeping house<br />

= rate of increase of labour productivity (variable, set at 1% to<br />

yield the summary data presented below)<br />

= is the real discount rate (variable, set at 4% to yield the<br />

summary data presented below)<br />

PV morbidity =<br />

99<br />

∑ P i y,s(n) D(n) [Y s(n) Es(n) + Y h s(n) E h s(n)]<br />

n=y<br />

365<br />

x (l+g) n-y<br />

(l+r)n-y<br />

where: PV morbidity = presented discounted value of earnings losses due to injury per<br />

person<br />

D(n)<br />

Pi y,s (n)<br />

n<br />

Ys(n)<br />

Es(n)<br />

Yh s (n)<br />

Eh s (n)<br />

= days restricted activity during the year of a person currently<br />

age n<br />

= probability that a person of sex s with injury i acquired at age<br />

y will survive to age n<br />

= future age of the individual (years of age over which the<br />

individual is deemed to have lost earnings and household<br />

production)<br />

= mean annual earnings of an employed person of sex s and age<br />

n including value of fringe benefits<br />

= proportion of the population of sex s and age n that are<br />

employed in the labour market<br />

= mean annual imputed value of homemaking services of a<br />

person of sex s and age n<br />

= proportion of the population of sex s and age n that are<br />

keeping house<br />

TNS Canadian Facts, Social and Policy Research 169

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