New Estimates of the Value of a Statistical Life Using Air Bag Regulations as a Quasi-Experiment

60 Pages Posted: 17 Nov 2012

See all articles by Chris Rohlfs

Chris Rohlfs

Syracuse University

Ryan Sullivan

Naval Postgraduate School

Thomas J. Kniesner

Claremont Graduate University - Department of Economic Sciences; Syracuse University - Department of Economics; IZA

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Abstract

Due to Federal regulations, automobile air bag availability was a model-specific discontinuous function of model year for used vehicles in the 1990s and early 2000s. We use these discontinuities and the gradual increase in the supply of air bags to trace out the demand curve for air bags and the implied distribution of the Value of a Statistical Life (VSL) across consumers. While imprecise, our preferred point estimates indicate that the median VSL is between $7 million and $13 million, but that a sizable portion of consumers placed negative values on air bags, probably due to distrust of the technology.

Keywords: value of statistical life, VSL, airbags, regression discontinuity design, quasi-experiment

JEL Classification: J17, R41, I18, K32, L62, D12, D61, H40

Suggested Citation

Rohlfs, Chris and Sullivan, Ryan and Kniesner, Thomas J., New Estimates of the Value of a Statistical Life Using Air Bag Regulations as a Quasi-Experiment. IZA Discussion Paper No. 6994, Available at SSRN: https://ssrn.com/abstract=2177132 or http://dx.doi.org/10.2139/ssrn.2177132

Chris Rohlfs (Contact Author)

Syracuse University ( email )

Center for Policy Resarch
426 Eggers Hall
Syracuse, NY 13244
United States

HOME PAGE: http://www-cpr.maxwell.syr.edu/

Ryan Sullivan

Naval Postgraduate School ( email )

1 University Circle
Monterey, CA 93943-5001
United States

Thomas J. Kniesner

Claremont Graduate University - Department of Economic Sciences ( email )

Claremont, CA 91711
United States

Syracuse University - Department of Economics ( email )

Syracuse, NY 13244-1020
United States

IZA

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