Valuing lives equally: Distributional weights for welfare analysis
Discussion Papers from Indian Statistical Institute, Delhi
Cost-benefit analysis as performed by governments and public-sector organisations typically applies equal weights to changes in incomes accruing to individuals from projects even when there is no proposal to compensate losers. One reason for the use of equal weights despite the absence of a theoretical justification for this practice is that all weights appear arbitrary. This note proposes the use of weights based on two axioms: (1) that all lives should be equally valued, and (2) that the monetary value attached to a person's life should be his or her own. This implies weights that are proportional to the reciprocals of the values of statistical lives
Keywords: cost-benefit analysis; social welfare; value of life; distributional weights (search for similar items in EconPapers)
JEL-codes: D60 D61 D63 (search for similar items in EconPapers)
Pages: 5 pages
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Journal Article: Valuing lives equally: Distributional weights for welfare analysis (2006)
Working Paper: Valuing lives equally: Distributional weights for welfare analysis (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:alo:isipdp:03-02
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