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

Viscusi, W. Kip; Aldy, Joseph E.

doi:10.2139/ssrn.362840

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

127 Pages Posted: 16 Dec 2002

See all articles by W. Kip Viscusi

W. Kip Viscusi

Vanderbilt University - Law School; National Bureau of Economic Research (NBER); Vanderbilt University - College of Arts and Science - Department of Economics; Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - Strategy and Business Economics

Joseph E. Aldy

Harvard Kennedy School; National Bureau of Economic Research; Resources for the Future; Harvard University - Harvard Kennedy School (HKS)

There are 2 versions of this paper

Date Written: November 2002

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 Classification: I10, J17, J28

Suggested Citation: 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). Available at SSRN: https://ssrn.com/abstract=362840 or http://dx.doi.org/10.2139/ssrn.362840