Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26336
Authors: 
Treich, Nicolas
Year of Publication: 
2008
Series/Report no.: 
CESifo working paper 2291
Abstract: 
We show that ambiguity aversion increases the value of a statistical life as soon as the marginal utility of wealth is higher if alive than dead. The intuition is that ambiguity aversion has a similar effect as an increase in the perceived baseline mortality risk, and thus operates as the “dead anyway” effect. We suggest, however, that ambiguity aversion should usually have a modest effect on the prevention of ambiguous mortality risks within benefit-cost analysis, and can hardly justify the substantial “ambiguity premium” apparently embodied in environmental policy-making.
Subjects: 
ambiguity
value-of-a-statistical-life
uncertainty
risk-aversion
willingness-topay
benefit-cost analysis
environmental risk
health policy
JEL: 
D81
Q51
I18
Document Type: 
Working Paper

Files in This Item:
File
Size
236.14 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.