Best Practice Regulation Guidance Note: Value of statistical life
, Department of Prime Minister and Cabinet, Office of Best Practice Regulation.
Viscusi, 2003, Age Variations in Workers' Value of Statistical Life, NBER Working paper No.
Aldy, 2007, Labor Market Estimates of the Senior Discount for the Value of Statistical Life, Journal of Environmental Economics and Management, 53(3): 377-392.
The value of statistical life would not be of much use to trial lawyers.
The value of statistical life softens the grim nature of this discussion because it deals with how much one would spend to avoid a given risk.
The Value of Statistical Life and Limb is generally predicted using one of the three main approaches.
We estimate the value of statistical life and injury in Pakistan based on compensating wage differential among the blue-collar male workers of the manufacturing sector in Lahore.
To identify the determinants of an individual's stated value of statistical life
, Table 4 shows three sets of results.
One would expect the more affluent passengers to purchase those tickets because of their higher value of statistical life. (127) These purchases would be private contracts, and would reflect the preferences of the people who chose to purchase the ticket or who chose to forgo such a purchase.
(176) Although Judge Williams focused on existing published estimates that indicated that expenditures of under $10 million per life saved could be counterproductive, low estimates appear to be implausible, since it is unlikely that expenditures comparable to the value of statistical life could reduce safety levels.
(ii) value future safety effects on the basis of the current willingness-to-pay based value of statistical life
(or prevention of statistical injury/illness)--thereby, incidentally, avoiding the necessity to make difficult predictions about future values of statistical life and safety--and then subject the resultant monetary measure of benefit to a discount rate that will, in general, be smaller than that which is applicable to future variations in income.(17)
Jones-Lee surveys the empirical literature on the value of life, finding that "if a |true' value of statistical life
exists, then it is very unlikely to be much less than 500,000 [pounds] 1987 prices and may, indeed, be well in excess of 1,000,000 [pounds]" (p.