EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/36305
  
Title:Policy relevant heterogeneity in the value of statistical life: new evidence from panel data quantile regressions PDF Logo
Authors:Kniesner, Thomas J.
Viscusi, William Kip
Ziliak, James Patrick
Issue Date:2009
Series/Report no.:IZA Discussion Papers 4508
Abstract:We examine differences in the value of statistical life (VSL) across potential wage levels in panel data using quantile regressions with intercept heterogeneity. Latent heterogeneity is econometrically important and affects the estimated VSL. Our findings indicate that a reasonable average cost per expected life saved cut-off for health and safety regulations is $7 million to $8 million per life saved, but the VSL varies considerably across the labor force. Our results reconcile the previous discrepancies between hedonic VSL estimates and the values implied by theories linked to the coefficient of relative risk aversion. Because the VSL varies elastically with income, regulatory agencies should regularly update the VSL used in benefit assessments, increasing the VSL proportionally with changes in income over time.
Subjects:Value of statistical life
VSL
quantile regression
panel data
fixed effects
PSID
fatality risk
CFOI
JEL:C23
I10
J17
J28
K00
Persistent Identifier of the first edition:urn:nbn:de:101:1-200911041024
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

Files in This Item:
File Description SizeFormat
614460115.pdf215.74 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/36305

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