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Publication selection and the income elasticity of the value of a statistical life

Author

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  • Doucouliagos, Hristos
  • Stanley, T.D.
  • Viscusi, W. Kip

Abstract

Estimates of the value of a statistical life (VSL) establish the price government agencies use to value fatality risks. Transferring these valuations to other populations often utilizes the income elasticity of the VSL, which typically draw on estimates from meta-analyses. Using a data set consisting of 101 estimates of the income elasticity of VSL from 14 previously reported meta-analyses, we find that after accounting for potential publication bias the income elasticity of value of a statistical life is clearly and robustly inelastic, with a value of approximately 0.25–0.63. There is also clear evidence of the importance of controlling for levels of risk, differential publication selection bias, and the greater income sensitivity of VSL from stated preference surveys.

Suggested Citation

  • Doucouliagos, Hristos & Stanley, T.D. & Viscusi, W. Kip, 2014. "Publication selection and the income elasticity of the value of a statistical life," Journal of Health Economics, Elsevier, vol. 33(C), pages 67-75.
    • Handle: RePEc:eee:jhecon:v:33:y:2014:i:c:p:67-75
    DOI: 10.1016/j.jhealeco.2013.10.010
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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