Working Paper: NBER ID: w9396
Authors: Dora L. Costa; Matthew E. Kahn
Abstract: We present the first nation wide value of life estimates for the United States at more than one point in time. Our estimates are for every ten years between 1940 and 1980, a period when declines in fatal accident rates were historically unprecedented. Our estimated elasticity of value of life with respect to per capita GNP is 1.5 to 1.7. We illustrate the importance of rising value of life for policy evaluation by examining the benefits of improved longevity since 1900, showing that the current marginal increase in longevity is more valuable than the large increase in the first half of the twentieth century.
Keywords: No keywords provided
JEL Codes: J17; J28; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| per capita GNP (D31) | value of life (J17) |
| income (E25) | value of life (J17) |
| income (E25) | demand for safety (J28) |
| risk of death (I12) | value of life (J17) |
| job safety (J28) | compensating differential for risk (J33) |
| compensating differential for risk (J33) | value of life (J17) |