Consortium on Compensating Income Variation

Although difficult, valuing desiderata that do not have a clear market price is important to inform public policy. The ConCIV research group uses and further enhances the compensating income variation (CIV) method to estimate the sufficient monetary compensation needed to offset the welfare losses or gains associated with such desiderata. A case in point is the value of not suffering from health-compromising conditions. In that case the statistical association between income, health, and well-being is used to generate an implied trade-off between income and health. This can, and is also done for other important aspects of life, such as the value of social relationships and safety from violence. Despite methodological advantages over other willingness-to-pay methods, the CIV literature is still very limited in its application but this is rapidly changing.

The Consortium on Compensating Income Variation includes scholars from various countries and at various stages in their carrier, as well as institutional affiliates. It is led by Tinna Laufey Asgeirsdottir, professor of economics at the University of Iceland. The research group has received funding from multiple funding sources, such as The Icelandic Research Fund, The University of Iceland Research Fund, The Icelandic Student Innovation Fund, and The Eimskip University Fund.