Valuing statistical lives from observations of speed limits and driving behavior

Jon Strand

No 2003:21, HERO Online Working Paper Series from University of Oslo, Health Economics Research Programme

Abstract: The paper discusses how to derive empirical estimates of the value of a statistical life (VSL) from observations of highway driving speeds, and from how such speeds are affected by speed limits and penalties for speeding. When drivers optimize with respect to driving speeds, we discuss three alternative approaches. The first two rely on constructing drivers’ utility functions, and the last on revealed government preferences similar to that used by Ashenfelter and Greenstone (2002) (A-G). The two last approaches are based on observations of changed driving speeds when speed limits and speeding penalties change. When drivers are law obedient and adhere to speed limits only the A-G approach can be used. Their approach is however unrealistic in putting overly great demand on government information about VSL, and in addition provides upwardly biased average VSL estimates.

Keywords: Value of a statistical life; VSL; driving (search for similar items in EconPapers)
JEL-codes: J17 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2009-06-22
New Economics Papers: this item is included in nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.hero.uio.no/publicat/2003/HERO2003_21.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:oslohe:2003_021

Access Statistics for this paper

More papers in HERO Online Working Paper Series from University of Oslo, Health Economics Research Programme HERO / Department of Health Management and Health Economics P.O. Box 1089 Blindern, N-0317 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Kristi Brinkmann Lenander ().