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The Valuation of Risks to Life: Evidence from the Market for Automobiles

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Author Info
Atkinson, Scott E
Halvorsen, Robert
Abstract

Using hedonic regression techniques, estimates of the willingness-to-pay for changes in the risks of dying can be inferred from actual behavior in market situations involving risk-dollar tradeoffs. Thaler and Rosen (1975) pioneered this approach, obtaining estimates of the value of a statistical life using labor market data, in this paper we use the hedonic technique to obtain the first estimates of the value of a statistical life from data on the market for automobiles. Our estimated value of a statistical life for the sample as a whole is $3.357 million 1986 dollars. Copyright 1990 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 72 (1990)
Issue (Month): 1 (February)
Pages: 133-36
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Handle: RePEc:tpr:restat:v:72:y:1990:i:1:p:133-36

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  1. ANDERSSON Henrik, 2008. "Perception of Own Death Risk : A Reassessment of Road-Traffic Mortality Risk," Working Papers 08.26.270, LERNA, University of Toulouse. [Downloadable!]
  2. Högberg, Martina, 2007. "Eco-driving? A discrete choice experiment on valuation of car attributes," Working Papers 2007:13, Swedish National Road & Transport Research Institute (VTI). [Downloadable!]
  3. Andersson, Henrik, 2006. "Willingness to Pay for Car Safety: Evidence from Sweden," Working Papers 2006:7, Swedish National Road & Transport Research Institute (VTI).
  4. Bhattacharya, Soma & Alberini, Anna & Cropper, Maureen L., 2006. "The value of mortality risk reductions in Delhi, India," Policy Research Working Paper Series 3995, The World Bank. [Downloadable!]
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  5. Svensson, Mikael & Vredin Johansson, Maria, 2007. "Willingness to Pay for Private and Public Safety: Why the Difference?," Working Papers 2007:2, Örebro University, Swedish Business School.
  6. Ho, Sa Chau & Hite, Diane, 2004. "Economic Impact Of Environmental Health Risks On House Values In Southeast Region: A County-Level Analysis," 2004 Annual meeting, August 1-4, Denver, CO 19921, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Henrik Andersson, 2008. "Willingness to Pay for Car Safety: Evidence from Sweden," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(4), pages 579-594, December. [Downloadable!] (restricted)
  8. Andersson, Henrik, 2008. "Perception of Own Death Risk: A Reassessment of Road-Traffic Mortality Risk," Working Papers 2008:11, Swedish National Road & Transport Research Institute (VTI). [Downloadable!]
  9. Sylvain Prado, 2009. "The European used-car market at a glance: Hedonic resale price valuation in automotive leasing industry," EconomiX Working Papers 2009-22, University of Paris West - Nanterre la Défense, EconomiX. [Downloadable!]
  10. Mikael Svensson, 2009. "Precautionary behavior and willingness to pay for a mortality risk reduction: Searching for the expected relationship," Journal of Risk and Uncertainty, Springer, vol. 39(1), pages 65-85, August. [Downloadable!] (restricted)
  11. Henrik Andersson, 2005. "The Value of Safety as Revealed in the Swedish Car Market: An Application of the Hedonic Pricing Approach," Journal of Risk and Uncertainty, Springer, vol. 30(3), pages 211-239, May. [Downloadable!] (restricted)
  12. Anna Alberini, 2004. "Robustness of VSL Values from Contingent Valuation Surveys," Working Papers 2004.135, Fondazione Eni Enrico Mattei. [Downloadable!]
  13. Svensson, Mikael, 2007. "Precautionary Behavior and Willingness to Pay for a Mortality Risk Reduction:Searching for the Expected Relationship," Working Papers 2007:3, Örebro University, Swedish Business School, revised 18 Feb 2008.
  14. Arianne de Blaeij & Raymond J.G.M. Florax & Piet Rietveld & Erik T. Verhoef, 2000. "The Value of Statistical Life in Road Safety: A Meta-Analysis," Tinbergen Institute Discussion Papers 00-089/3, Tinbergen Institute. [Downloadable!]
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