Working Paper: NBER ID: w7166
Authors: Jens Ludwig; Philip J. Cook
Abstract: This paper presents the first attempt to estimate the benefits of reducing crime using the contingent-valuation (CV) method. We focus on gun violence, a crime of growing policy concern in America. Our data come from a national survey in which we ask respondents referendum-type questions that elicit their willingness-to-pay (WTP) to reduce gun violence by 30 percent. We estimate that the public's WTP to reduce gun violence by 30 percent equals $23.8 billion, or $750,000 per injury. Our estimate implies a statistical value of life ($4.05 to $6.25 million) that is quite consistent with those derived from other methods.
Keywords: gun violence; contingent valuation; willingness to pay
JEL Codes: D8; J17; H51
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| proposed reduction in gun violence (K16) | public's willingness to pay (H49) |
| public's willingness to pay (H49) | statistical value of life (J17) |
| household income and size (D19) | public's willingness to pay (H49) |