Assessing Whether There Is a Cancer Premium for the Value of a Statistical Life

37 Pages Posted: 28 Nov 2012

See all articles by W. Kip Viscusi

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; Vanderbilt University - Strategy and Business Economics

Joel C. Huber

Duke University - Fuqua School of Business

Jason Bell

Duke University - Fuqua School of Business

Date Written: November 20, 2012

Abstract

This article estimates whether there is a cancer risk premium for the value of a statistical life (VSL) using stated preference valuations of cancer risks for a large, nationally representative U.S. sample. The present value of an expected cancer case that occurs after a one decade latency period is $10.85 million, consistent with a cancer premium that is 21% greater than the median VSL estimates for acute fatalities. This cancer premium is smaller than the premium proposed for policy analyses in the U.K. and the U.S. There is also a greater premium for policies that reduce cancer risks to zero and for risk reductions affecting those who perceive themselves to have a greater than average probability of getting cancer.

Keywords: cancer, value of a statistical life (VSL), stated preference, risk

JEL Classification: I1, I18, J17, K32

Suggested Citation

Viscusi, W. Kip and Huber, Joel C. and Bell, Jason, Assessing Whether There Is a Cancer Premium for the Value of a Statistical Life (November 20, 2012). Vanderbilt Law and Economics Research Paper No. 12-34. Available at SSRN: https://ssrn.com/abstract=2181619 or http://dx.doi.org/10.2139/ssrn.2181619

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

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

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

Vanderbilt University - Strategy and Business Economics ( email )

Nashville, TN 37203
United States

Joel C. Huber

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
919-660-7785 (Phone)

Jason Bell

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

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