EconPapers    
Economics at your fingertips  
 

The Value of Life: A Labor-Based Theory

Khoury Sarkis Joseph and Mahmoud Arayssi
Additional contact information
Khoury Sarkis Joseph: University of California, Riverside

Journal of Business Valuation and Economic Loss Analysis, 2008, vol. 3, issue 1, 29

Abstract: This paper develops a labor-based model where a worker chooses between not only work and leisure, as the traditional labor models have argued, but rather between labor, leisure and the purchase of insurance. The model allows the insurance buyer to determine the amount of insurance he is willing to work for and purchase while maximizing utility and deriving the shadow price of risk, thus, the value of life. The model is applied to quadratic, logarithmic, and exponential utility functions. Results can help insurance companies determine the cost of insurance associated with a specific job and related risk.

Keywords: labor theory; shadow price of risk (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2202/1932-9156.1015 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:bpj:jbvela:v:3:y:2008:i:1:n:5

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/jbvela/html

DOI: 10.2202/1932-9156.1015

Access Statistics for this article

Journal of Business Valuation and Economic Loss Analysis is currently edited by Bradley T. Ewing and James J. Hoffman

More articles in Journal of Business Valuation and Economic Loss Analysis from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2025-03-19
Handle: RePEc:bpj:jbvela:v:3:y:2008:i:1:n:5