Risk Aversion and the Value of Risk to Life
Copyright policy )Risk Aversion and the Value of Risk to Life
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.
Economics, Cost-Benefit Analysis, Economie sociale, D.D9.D91 - Intertemporal Household Choice • Life Cycle Models and Saving, J17 - Value of Life, value of statistical life ; lifecycle behavior ; cost-benefit analysis, and Uncertainty/D.D8.D81 - Criteria for Decision-Making under Risk and Uncertainty, D91 - Intertemporal Household Choice, and Welfare/I.I1 - Health/I.I1.I18 - Government Policy • Regulation • Public Health, D.D8.D81, info:eu-repo/classification/ddc/330, [QFIN]Quantitative Finance [q-fin], I18, ddc:330, I18 - Government Policy, Cost-benefit analysis, Cost-benefit Analysis, [QFIN] Quantitative Finance [q-fin], Lifecycle Behavior; Life Insurance; Value of Statistical Life; Cost-Benefit Analysis;, D81, Knowledge, JEL: D - Microeconomics/D.D6 - Welfare Economics/D.D6.D61 - Allocative Efficiency • Cost–Benefit Analysis, Lebenszyklus, Kosten-Nutzen-Analyse, Public Health, Theorie, Regulation, Life Cycle Models and Saving, 330, I.I1.I18, JEL: J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J17 - Value of Life • Forgone Income, J.J1.J17 - Value of Life • Forgone Income, D.D6.D61, 334, Education, Sterblichkeit, D91, FOS: Mathematics, Life Insurance, info:eu-repo/classification/ddc/510, D81 - Criteria for Decision-Making under Risk and Uncertainty, JEL: I - Health, J.J1.J17, Value of statistical life; Lifecycle behavior; Cost-benefit analysis, J17, value of statistical life; lifecycle behavior; cost-benefit analysis, Value of Statistical Life; Lifecycle Behavior; Cost-benefit Analysis, Lifecycle Behavior, D.D6.D61 - Allocative Efficiency • Cost–Benefit Analysis, D.D8.D81 - Criteria for Decision-Making under Risk and Uncertainty, Risikoaversion, I.I1.I18 - Government Policy • Regulation • Public Health, JEL: D - Microeconomics/D.D8 - Information, JEL: D - Microeconomics/D.D9 - Intertemporal Choice/D.D9.D91 - Intertemporal Household Choice • Life Cycle Models and Saving, Lifecycle behavior, Value of Statistical Life, D61, D.D9.D91, Forgone Income, D61 - Allocative Efficiency, Value of statistical life, Mathematics, jel: jel:D81, jel: jel:I18, jel: jel:D61, jel: jel:D91, jel: jel:J17
Economics, Cost-Benefit Analysis, Economie sociale, D.D9.D91 - Intertemporal Household Choice • Life Cycle Models and Saving, J17 - Value of Life, value of statistical life ; lifecycle behavior ; cost-benefit analysis, and Uncertainty/D.D8.D81 - Criteria for Decision-Making under Risk and Uncertainty, D91 - Intertemporal Household Choice, and Welfare/I.I1 - Health/I.I1.I18 - Government Policy • Regulation • Public Health, D.D8.D81, info:eu-repo/classification/ddc/330, [QFIN]Quantitative Finance [q-fin], I18, ddc:330, I18 - Government Policy, Cost-benefit analysis, Cost-benefit Analysis, [QFIN] Quantitative Finance [q-fin], Lifecycle Behavior; Life Insurance; Value of Statistical Life; Cost-Benefit Analysis;, D81, Knowledge, JEL: D - Microeconomics/D.D6 - Welfare Economics/D.D6.D61 - Allocative Efficiency • Cost–Benefit Analysis, Lebenszyklus, Kosten-Nutzen-Analyse, Public Health, Theorie, Regulation, Life Cycle Models and Saving, 330, I.I1.I18, JEL: J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J17 - Value of Life • Forgone Income, J.J1.J17 - Value of Life • Forgone Income, D.D6.D61, 334, Education, Sterblichkeit, D91, FOS: Mathematics, Life Insurance, info:eu-repo/classification/ddc/510, D81 - Criteria for Decision-Making under Risk and Uncertainty, JEL: I - Health, J.J1.J17, Value of statistical life; Lifecycle behavior; Cost-benefit analysis, J17, value of statistical life; lifecycle behavior; cost-benefit analysis, Value of Statistical Life; Lifecycle Behavior; Cost-benefit Analysis, Lifecycle Behavior, D.D6.D61 - Allocative Efficiency • Cost–Benefit Analysis, D.D8.D81 - Criteria for Decision-Making under Risk and Uncertainty, Risikoaversion, I.I1.I18 - Government Policy • Regulation • Public Health, JEL: D - Microeconomics/D.D8 - Information, JEL: D - Microeconomics/D.D9 - Intertemporal Choice/D.D9.D91 - Intertemporal Household Choice • Life Cycle Models and Saving, Lifecycle behavior, Value of Statistical Life, D61, D.D9.D91, Forgone Income, D61 - Allocative Efficiency, Value of statistical life, Mathematics, jel: jel:D81, jel: jel:I18, jel: jel:D61, jel: jel:D91, jel: jel:J17
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