Working Paper: NBER ID: w11916
Authors: Orley Ashenfelter
Abstract: Tradeoffs between monetary wealth and fatal safety risks are summarized in the value of a statistical life (VSL), a measure that is widely used for the evaluation of public policies in medicine, the environment, and transportation safety. This paper demonstrates the widespread use of this concept and summarizes the major issues, both theoretical and empirical, that must be confronted in order to provide a credible estimate of a VSL. The paper concludes with an application of these issues to a particular study of speed limits and highway safety.
Keywords: No keywords provided
JEL Codes: J17; H43; I18; R4
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Wealth (D31) | Value of a Statistical Life (VSL) (J17) |
| Fatality risk (J17) | Value of a Statistical Life (VSL) (J17) |
| Wealth increase (w) (D31) | Probability of death (p) (C41) |
| Value of a Statistical Life (VSL) (J17) | Tradeoff between wealth and fatality risk (J17) |
| Change in speed limits (R48) | Value of a Statistical Life (VSL) (J17) |