Inflation Adjustment

The inflation adjustment needs to be carefully considered in relation to the valuation database that

you are using. (This is discussed in detail in the section on loading inflation data.) The default

valuation database in the U.S. Setup has a currency year of 2000, so the inflation dataset has a

value of 1 for the year 2000.

Income Growth Adjustment

Willingness to pay (WTP) estimates are believed to be tied to the income of individuals. As

income rises over time, WTP estimates are likely to increase as well. The income growth

adjustment is designed to take this phenomenon into account, allowing you to account for income

growth between the time when WTP estimates were calculated and the year of your analysis.

As with the inflation adjustment, the income growth adjustment has a close connection to the

valuation estimates. For example, the valuation estimates in the default version of BenMAP are

assumed to be based on income levels from 1990, so the income growth adjustment database

has a value of 1 for the year 1990. (This is discussed in detail in the section on loading income

growth data.)

To use the income growth adjustment, you need to choose a dataset and then choose the income

year that you want to use. It is common to set the "Year" variable to the year of the population

 

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