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Cost Benefit Analysis, Value Of A Statistical Life And Culture: Challenges For Risk Regulation

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  • Marquez, Pablo

Abstract

The author studies three aspects of human live valuation and its relation with cost benefit analysis and regulation. More precisely the author addresses the problem of valuation of a statistical human life and its relation with cost benefit analysis in mortality risk reduction. First, studies the debate about Valuation of a Statistical Human Life (VSL) and Cost-Benefit Analysis (CBA) in mortality risks regulation; second, deals with two challenges to CBA and VSL, these are (a) the problem of discount rates and the problem of (dis)counting of future human lives, and (b), tests if culture (represented as a set of values) has an incidence in risk preferences and therefore, in willingness to pay for life in different countries.

Suggested Citation

  • Marquez, Pablo, 2006. "Cost Benefit Analysis, Value Of A Statistical Life And Culture: Challenges For Risk Regulation," MPRA Paper 2632, University Library of Munich, Germany, revised Feb 2007.
    • Handle: RePEc:pra:mprapa:2632
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    References listed on IDEAS

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    2. Amartya Sen, 1995. "Environmental Evaluation And Social Choice: Contingent Valuation And The Market Analogy," The Japanese Economic Review, Japanese Economic Association, vol. 46(1), pages 23-37, March.
    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. Sen, Amartya, 2000. "The Discipline of Cost-Benefit Analysis," The Journal of Legal Studies, University of Chicago Press, vol. 29(2), pages 931-952, June.
    5. Viscusi, W Kip, 1978. "Wealth Effects and Earnings Premiums for Job Hazards," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 408-416, August.
    6. Jones-Lee, M W, 1992. "Paternalistic Altruism and the Value of Statistical Life," Economic Journal, Royal Economic Society, vol. 102(410), pages 80-90, January.
    7. W. Kip Viscusi, 1994. "Mortality Effects of Regulatory Costs and Policy Evaluation Criteria," RAND Journal of Economics, The RAND Corporation, vol. 25(1), pages 94-109, Spring.
    8. Sunstein, Cass R, 2000. "Cognition and Cost-Benefit Analysis," The Journal of Legal Studies, University of Chicago Press, vol. 29(2), pages 1059-1103, June.
    9. Francois, P. & Zabojnik, J., 2001. "Culture and Development : An Analytical Framework," Other publications TiSEM 1685c9e0-b3c0-438f-9f2e-f, Tilburg University, School of Economics and Management.
    10. Amartya Sen, 1997. "Maximization and the Act of Choice," Econometrica, Econometric Society, vol. 65(4), pages 745-780, July.
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    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • K29 - Law and Economics - - Regulation and Business Law - - - Other
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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