Risk Aversion and the Value of Risk to Life

Antoine Bommier and Bertrand Villeneuve

No 1267, CESifo Working Paper Series from CESifo

Abstract: This paper argues for an alternative methodology to estimate the value of risk to life. By relaxing the assumption of additive separability, we introduce risk aversion with respect to the length of life and show that the extended model better fits available data. This is crucial for the extrapolation stage that the evaluation of life-saving programs systematically requires. Current practice, we show, puts too little weight on the young. Our correction surpasses in magnitude that introduced by the switch from the notion of number of lives saved to the notion of years of life saved.

Keywords: value of statistical life; lifecycle behavior; cost-benefit analysis (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-hea and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Risk Aversion and the Value of Risk to Life (2012)
Working Paper: Risk Aversion and the Value of Risk to Life (2012)
Working Paper: Risk Aversion and the Value of Risk to Life (2010)
Working Paper: Risk Aversion and the Value of Risk to Life (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1267

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