The Military VSL

Vanderbilt Law Research Paper No. 24-38

50 Pages Posted: 7 Nov 2024 Last revised: 17 Oct 2024

See all articles by Thomas J. Kniesner

Thomas J. Kniesner

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

Ryan Sullivan

Naval Postgraduate School

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

Multiple version iconThere are 2 versions of this paper

Date Written: September 29, 2024

Abstract

This paper reviews theory and empirical evidence in the economics literature and provides a standard VSL applicable to the Department of Defense (DOD). We follow Viscusi (2018a) by conducting a meta-analysis consisting of 1,025 VSL estimates from 68 different labor market studies and find a “best-set” average VSL estimate of $11.8 million (US$2021) across all studies. For DOD analysts and practitioners, we advocate using this best-set VSL estimate for the vast majority of benefit-cost analyses (BCAs) within the DOD. In addition to providing a VSL benchmark to use in DOD BCAs, we also breakdown casualty types and provide a range of VSL estimates to use in sensitivity analyses. For this section of the analysis, we use restricted data from the DOD on over 6,700 U.S. military fatalities in Afghanistan and Iraq from 2001 to 2021. Fatalities are highly concentrated among young, white, and enlisted males. In addition, we find higher fatality rates in the Army and Marines in contrast to the low number of fatalities (less than 5%) in the Air Force and Navy. Applying standard VSL pay grade and income adjustments to U.S. military fatalities in Afghanistan and Iraq, we find adjusted VSL estimates ranging in value from $3.2 million to $27.6 million per statistical life (US$2021).

Keywords: Military, DOD, VSL

JEL Classification: H56, I18, J17, J28

Suggested Citation

Kniesner, Thomas J. and Sullivan, Ryan and Viscusi, W. Kip, The Military VSL (September 29, 2024). Vanderbilt Law Research Paper No. 24-38, Available at SSRN: https://ssrn.com/abstract=4971099 or http://dx.doi.org/10.2139/ssrn.4971099

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

P.O. Box 7240
Bonn, D-53072
Germany

Ryan Sullivan (Contact Author)

Naval Postgraduate School ( email )

1 University Circle
Monterey, CA 93943-5001
United States

W. Kip Viscusi

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/bio/?pid=w-kip-viscusi

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Vanderbilt University - College of Arts and Science - Department of Economics

Box 1819 Station B
Nashville, TN 37235
United States
(615) 343-7715 (Phone)
(615) 343-5953 (Fax)

HOME PAGE: http://as.vanderbilt.edu/economics/bio/wkip-viscusi/

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://business.vanderbilt.edu/bio/w-kip-viscusi/

Vanderbilt University - Strategy and Business Economics

Nashville, TN 37203
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
34
Abstract Views
204
PlumX Metrics