Valuing lives equally: Distributional weights for welfare analysis
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers from Indian Statistical Institute, New Delhi, India
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
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: Track citations by RSS feed
Downloads: (external link)
Journal Article: Valuing lives equally: Distributional weights for welfare analysis (2006)
Working Paper: Valuing lives equally: Distributional weights for welfare analysis (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ind:isipdp:03-02
Access Statistics for this paper
More papers in Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers from Indian Statistical Institute, New Delhi, India Contact information at EDIRC.
Bibliographic data for series maintained by Shamprasad M. Pujar ().