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Mortality Risks Induced by Economic Expenditures

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  • Ralph L. Keeney

Abstract

Existing evidence shows that lower incomes are associated with higher mortality risks. This paper examines the implications for fatalities when the relationship is interpreted as an induced relationship, meaning that lower incomes will on average lead to higher mortality risks. A model is developed for estimating the number of fatalities possibly induced by economic expenditures. This model accounts for different allocations of the expenditures on family units with varying income levels. Illustrative calculations provide insights about the possible significance of fatalities induced by economic expenditures. These results suggest that some expensive regulations and programs intended to save lives may actually lead to increased fatalities. Important caveats to reduce the likelihood of misinterpreting or misusing the results are included.

Suggested Citation

  • Ralph L. Keeney, 1990. "Mortality Risks Induced by Economic Expenditures," Risk Analysis, John Wiley & Sons, vol. 10(1), pages 147-159, March.
    • Handle: RePEc:wly:riskan:v:10:y:1990:i:1:p:147-159
    DOI: 10.1111/j.1539-6924.1990.tb01029.x
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    References listed on IDEAS

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    1. Arthur, W B, 1981. "The Economics of Risks to Life," American Economic Review, American Economic Association, vol. 71(1), pages 54-64, March.
    2. Ralph L. Keeney, 1984. "Ethics, Decision Analysis, and Public Risk," Risk Analysis, John Wiley & Sons, vol. 4(2), pages 117-129, June.
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    6. Ralph L. Keeney, 1980. "Evaluating Alternatives Involving Potential Fatalities," Operations Research, INFORMS, vol. 28(1), pages 188-205, February.
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    Cited by:

    1. James K. Hammitt, 2020. "Valuing mortality risk in the time of COVID-19," Journal of Risk and Uncertainty, Springer, vol. 61(2), pages 129-154, October.
    2. Thomas J. Kniesner & W. Kip Viscusi, 2023. "Compensating Differentials for Occupational Health and Safety Risks: Implications of Recent Evidence," Research in Labor Economics, in: 50th Celebratory Volume, volume 50, pages 83-116, Emerald Group Publishing Limited.
    3. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
    4. Lomborg, Bjorn, 2020. "Welfare in the 21st century: Increasing development, reducing inequality, the impact of climate change, and the cost of climate policies," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    5. Broughel, James & Viscusi, Kip, 2017. "Death by Regulation: How Regulations Can Increase Mortality Risk," Working Papers 06864, George Mason University, Mercatus Center.
    6. John D. Graham & Bei‐Hung Chang & John S. Evans, 1992. "Poorer Is Riskier," Risk Analysis, John Wiley & Sons, vol. 12(3), pages 333-337, September.
    7. Patrick Hofstetter & Jane C. Bare & James K. Hammitt & Patricia A. Murphy & Glenn E. Rice, 2002. "Tools for Comparative Analysis of Alternatives: Competing or Complementary Perspectives?," Risk Analysis, John Wiley & Sons, vol. 22(5), pages 833-851, October.
    8. Olga Yakusheva & Eline van den Broek-Altenburg & Gayle Brekke & Adam Atherly, 2022. "Lives saved and lost in the first six month of the US COVID-19 pandemic: A retrospective cost-benefit analysis," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-12, January.
    9. Peter Sinsheimer, 1991. "The Risks of Economic Modeling Before Establishing the Causal Inference," Risk Analysis, John Wiley & Sons, vol. 11(2), pages 187-188, June.
    10. Ralph L. Keeney, 1996. "The Role of Values in Risk Management," The ANNALS of the American Academy of Political and Social Science, , vol. 545(1), pages 126-134, May.
    11. Viscusi W. Kip, 2019. "The Mortality Cost Metric for the Costs of War," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 25(3), pages 1-10, September.
    12. James K. Hammitt & Eric S. Belsky & Jonathan I. Levy & John D. Graham, 1999. "Residential Building Codes, Affordability, and Health Protection: A Risk‐Tradeoff Approach," Risk Analysis, John Wiley & Sons, vol. 19(6), pages 1037-1058, December.
    13. James Broughel & W. Kip Viscusi, 2021. "The Mortality Cost Of Expenditures," Contemporary Economic Policy, Western Economic Association International, vol. 39(1), pages 156-167, January.
    14. Broughel, James & Chambers, Dustin, 2021. "Federal Regulation and Mortality in the 50 States," Working Papers 10289, George Mason University, Mercatus Center.

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