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Policy Relevant Heterogeneity in the Value of Statistical Life: New Evidence from Panel Data Quantile Regressions

dc.contributor.authorViscusi, W. Kip
dc.contributor.authorKniesner, Thomas J.
dc.contributor.authorZiliak, James Patrick
dc.identifier.citation40 Journal of Risk and Uncertainty 15 (2010)en_US
dc.descriptionArticle published in a journal of theoretical and empirical papers that analyze risk-bearing behavior and decision-making under uncertainty.en_US
dc.description.abstractWe examine differences in the value of statistical life (VSL) across potential wage levels in panel data using quantile regressions with intercept heterogeneity. Latent heterogeneity is econometrically important and affects the estimated VSL. Our findings indicate that a reasonable average cost per expected life saved cut-off for health and safety regulations is $7 million to $8 million per life saved, but the VSL varies considerably across the labor force. Our results reconcile the previous discrepancies between hedonic VSL estimates and the values implied by theories linked to the coefficient of relative risk aversion. Because the VSL varies elastically with income, regulatory agencies should regularly update the VSL used in benefit assessments, increasing the VSL proportionally with changes in income over time.en_US
dc.format.extent1 PDF (31 pages)en_US
dc.publisherJournal of Risk and Uncertaintyen_US
dc.subjectValue of statistical lifeen_US
dc.subjectRegulatory policyen_US
dc.subject.lcshLife -- Valuationen_US
dc.subject.lcshLife expectancyen_US
dc.subject.lcshSafety regulationsen_US
dc.subject.lcshIndustrial safety -- Law and legislationen_US
dc.subject.lcshRisk -- Economic aspectsen_US
dc.titlePolicy Relevant Heterogeneity in the Value of Statistical Life: New Evidence from Panel Data Quantile Regressionsen_US

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