The value of a statistical life under changes in ambiguity

Han Bleichrodt, Christophe Courbage and Béatrice Rey
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Christophe Courbage: Haute Ecole de Gestion de Genève
Béatrice Rey: Univ Lyon, Université Lumière Lyon 2

Journal of Risk and Uncertainty, 2019, vol. 58, issue 1, No 1, 15 pages

Abstract: Abstract The value of a statistical life (VSL) is a key parameter in the analysis of government policy. Most policy decisions are made under ambiguity. This paper studies the effect of changes in ambiguity perception on the VSL. We propose a definition of increases in ambiguity perception based on Ekern’s (1980) definition of increases in risk. Ambiguity aversion alone is not sufficient to lead to an increase in the VSL when the decision maker perceives more ambiguity. Our results highlight the importance of higher order ambiguity attitudes, particularly ambiguity prudence.

Keywords: Value of a statistical life; Ambiguity; Prudence; Smooth ambiguity model; Neo-additive preferences; D81; I18; Q51 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: The value of a statistical life under changes in ambiguity (2019)
Working Paper: The Value of a Statistical Life Under Changes in Ambiguity (2018)
Working Paper: The Value of a Statistical Life Under Changes in Ambiguity (2018)
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DOI: 10.1007/s11166-019-09296-3

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