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The Value of a Statistical Life: A Critical Review of Market Estimates Throughout the World

W. Kip Viscusi
Vanderbilt University - Law School; National Bureau of Economic Research (NBER); Vanderbilt University - Department of Economics; Vanderbilt University - Owen Graduate School of Management

Joseph E. Aldy
Resources for the Future

November 2002

Harvard Law and Economics Discussion Paper No. 392

Abstract:
A substantial literature over the past thirty years has evaluated tradeoffs between money and fatality risks. These values in turn serve as estimates of the value of a statistical life. This article reviews more than 60 studies of mortality risk premiums from ten countries and approximately 40 studies that present estimates of injury risk premiums. This critical review examines a variety of econometric issues, the role of unionization in risk premiums, and the effects of age on the value of a statistical life. Our meta-analysis indicates an income elasticity of the value of a statistical life from about 0.5 to 0.6. The paper also presents a detailed discussion of policy applications of these value of a statistical life estimates and related issues, including risk-risk analysis.

JEL Classifications: I10, J17, J28

Working Paper Series

Date posted: December 16, 2002 ; Last revised: December 16, 2002

Suggested Citation

Viscusi, W. Kip and Aldy, Joseph E., The Value of a Statistical Life: A Critical Review of Market Estimates Throughout the World (November 2002). Harvard Law and Economics Discussion Paper No. 392. Available at SSRN: http://ssrn.com/abstract=362840 or doi:10.2139/ssrn.362840

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Contact Information

W. Kip Viscusi (Contact Author) Vanderbilt University - Law School ( email ) 131 21st Avenue South Nashville, TN 37203-1181 United States 615-343-7715 (Phone) 615-322-5953 (Fax) HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm
National Bureau of Economic Research (NBER) 1050 Massachusetts Avenue Cambridge, MA 02138 United States
Vanderbilt University - Department of Economics ( email ) Box 1819 Station B Nashville, TN 37235 United States (615) 343-7715 (Phone) (615) 343-5953 (Fax) HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm
Vanderbilt University - Owen Graduate School of Management ( email ) 401 21st Avenue South Nashville, TN 37203 United States (615) 343-7715 (Phone) (615) 343-5953 (Fax) HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm
Joseph E. Aldy Resources for the Future ( email ) 1616 P Street, NW Washington, DC 20036 United States 202-328-5091 (Phone) HOME PAGE: http://www.rff.org/Aldy.cfm