IDEAS home Printed from https://ideas.repec.org/a/bpj/jbvela/v1y2006i1n3.html
   My bibliography  Save this article

The Value of Life: A New Labor Theory-Based Model

Author

Listed:
  • Arayssi Mahmoud

    (Dhofar University, Oman and American University of Beirut, Lebanon)

  • Khoury Sarkis Joseph

    (University of California, Riverside)

  • Uwaydah Mardini Rania

    (American University of Beirut, Lebanon)

Abstract

This paper develops a labor-based model where a worker chooses between not only work and leisure, as the traditional labor models have argued, but rather between labor, leisure and the purchase of insurance. The model allows the insurance buyer to determine the amount of insurance he is willing to work for and purchase while maximizing utility and derives the shadow price of risk, thus the value of life. The model is applied to quadratic, logarithmic, and exponential utility functions. Results can help insurance companies determine the cost of insurance associated with a specific job and related risk.

Suggested Citation

  • Arayssi Mahmoud & Khoury Sarkis Joseph & Uwaydah Mardini Rania, 2006. "The Value of Life: A New Labor Theory-Based Model," Journal of Business Valuation and Economic Loss Analysis, De Gruyter, vol. 1(1), pages 1-15, October.
    • Handle: RePEc:bpj:jbvela:v:1:y:2006:i:1:n:3
    DOI: 10.2202/1932-9156.1004
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1932-9156.1004
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1932-9156.1004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:jbvela:v:1:y:2006:i:1:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.