On the Definition and Age-Dependency of the Value of a Statistical Life. A Review and Extension
AbstractThe value of preventing a fatality or (saving) a statistical life is an important question in health economics as well as environmental economics. This paper reviews and adds new insights to several of the issues discussed in the literature. For example, how do we define the value of a (statistical) life? Are there really strong theoretical reasons for believing that the value of a life declines with age? The paper derives definitions of the value of a statistical life in both single-period models and life-cycle models. Models with and without actuarially fair annuities are examined, as well as the age-profile of the value of a statistical life.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 490.
Length: 32 pages
Date of creation: 25 Jan 2002
Date of revision: 29 Jan 2002
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More information through EDIRC
Value of a statistical life; value of preventing a fatality; age-specific values; willingness to pay;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- I10 - Health, Education, and Welfare - - Health - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-02-10 (All new papers)
- NEP-HEA-2002-02-15 (Health Economics)
- NEP-IAS-2002-02-15 (Insurance Economics)
- NEP-MIC-2002-02-15 (Microeconomics)
- NEP-PKE-2002-02-15 (Post Keynesian Economics)
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