The Cost-Effectiveness of Armored Tactical Wheeled Vehicles for Overseas U.S. Army Operations
41 Pages Posted: 25 Aug 2011
Date Written: July 13, 2011
This study uses For Official Use Only data on U.S. military operations to evaluate the large-scale Army policies to replace relatively light Type 1 Tactical Wheeled Vehicles (TWVs) with more heavily protected Type 2 variants and later to replace Type 2s with more heavily protected Type 3s. We find that Type 2 TWVs reduced fatalities at $1.1 million to $24.6 million per life saved, with our preferred cost estimates falling below the $7.5 million cost-effectiveness threshold, and did not reduce fatalities for administrative and support units. We find that replacing Type 2 with Type 3 TWVs did not appreciably reduce fatalities and was not cost-effective.
Keywords: Tactical Vehicles, Military, VSL, Fatalities, Army
JEL Classification: H56, J17, D24, J24, L11
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