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Title:Risk aversion and the value of risk to life PDF Logo
Authors:Bommier, Antoine
Villeneuve, Bertrand
Issue Date:2004
Series/Report no.:CESifo working papers 1267
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.
Subjects:value of statistical life ; lifecycle behavior ; cost-benefit analysis
JEL:D61
I18
D91
D81
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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