Age,autos, and the value of a statistical life

The value of a statistical life (VSL) is used to assign a dollar value to the benefits of health and safety regulations. Many of those regulations disproportionately benefit older people, but most estimates of the VSL come from hedonic wage regressions with few older workers and no retirees. Using automobile purchase decisions, I estimate a VSL for individuals from the age of 18 up to the age of 85. Combining information on vehicle holdings and use, household attributes, used vehicle prices, crash test results, and yearly fatal accidents for each make, model, and vintage automobile, I calculate a separate willingness to pay for reduced mortality for different age groups. I find a significant inverted-U shape to the age-VSL function that ranges from $1.5 to $19.2 million (in 2009 dollars). The shape and magnitude of the vehicle-based age-VSL relationship corroborate labor market estimates and extend the age range of revealed preference evidence on the relationship between age and the VSL.     

Background Risks and the Value of a Statistical Life

We examine the effects of background mortality and financial risks on an individual's willingness to pay to reduce his mortality risk (the value of statistical life or VSL). Under reasonable assumptions about risk aversion and prudence with respect to wealth in the event of survival and with respect to bequests in the event of death, background mortality and financial risks decrease VSL. The effects of large mortality or financial risks on VSL can be substantial, but the effects of small background risks are negligible. These results suggest that the commonplace failure to account for background risk in evaluating VSL is unlikely to produce substantial bias in most applications.     

A Choice Experiment Approach to the Valuation of Mortality

This paper presents an integrated framework for evaluating the reduction of several types of mortality risk using a Choice Experiment (CE) approach, a type of stated preference technique. Using this approach, we can distinguish the marginal willingness to pay (MWTP) for the amount of risk reduction from the MWTP for the opportunity of risk reduction and therefore calculate the “Quantity-based” Value of a Statistical Life. The risks in our survey include mortality risks due to accident, cancer, and heart disease. The Quantity-based VSL is calculated to be 350 million JPY (in 2002 Japanese Yen, about 2.9 million US dollars). Furthermore, we analyzed the influence of subjective risk perception and population characteristics of the respondents on their MWTP. Estimated results suggest that it is unnecessary to adjust the VSL according to the differences in the type of risk if the VSL is calculated using an adequate approach. However, adjustments for the timing of risk reduction and population characteristics are found to be significant for the execution of benefit transfer.JEL Classification: I18, D81, J17     

Risk Perceptions and Value of a Statistical Life for Air Pollution and Traffic Accidents: Evidence from Bangkok,Thailand

This paper presents results of two contingent valuation surveys conducted in Bangkok measuring individuals’ willingness to pay (WTP) to reduce mortality risk arising from two risk contexts: air pollution traffic accidents Results from the risk perception survey disclose that respondents view the two risks differently. WTP to reduce air pollution risk is influenced by degrees of dread, severity, controllability and personal exposure, while WTP to reduce traffic accident risk is influenced by perceived immediate occurrence. Nevertheless, the value of a statistical life (VSL) for both air pollution and traffic accidents are comparable (US$0.74 to $1.32 million and US$0.87 to $1.48 million, respectively). This indicates that the risk perception factor alone has little impact on the VSL, a finding similar to previous studies using program choice indifferences.JEL Classification: I18, D61, J17, J28     

Paying for permanence: Public preferences for contaminated site cleanup

We use conjoint choice questions to investigate the preferences of people in four cities in Italy for income and future/permanent mortality risk reductions delivered by contaminated site remediation policies. The VSL is €5.6 million for an immediate risk reduction. If the risk reduction takes place 20 years from now, the implied VSL is €1.26 million. Respondents’ implicit discount rate is 7%. The VSL depends on respondent characteristics, familiarity with contaminated sites, concern about the health effects of exposure to toxicants, having a family member with cancer, perceived usefulness of public programs and beliefs about the goals of government remediation programs.

Valuing lives equally: Defensible premise or unwarranted compromise?

This article examines the nature of the restrictions on the underlying social welfare function that would appear to be required in order to justify the application of a “common” Value of Statistical Life (VSL) for any particular hazard within a given society and considers the way in which the magnitude of this common VSL might relate to the values actually employed in practice. The article also considers the question of whether, by contrast, discounts or premia might legitimately be applied to the VSL in order to take account of factors such as age or current exposure to risk and explores the form that such discounts or premia might reasonably take.

Elicitation of health values from mortality risk reduction

There are concerns regarding uncertainty about the accuracy of applying available empirical willingness-to-pay (WTP) estimates for reducing accidental deaths to value changes in risks of pollution-related deaths. In this study, we develop a theoretical model on defining WTP, and its determinants, and derive WTP estimates for changes in pollution-related mortality risks with varying morbidity and timing attributes. A survey is designed and conducted with 100 subjects. Each subject was to complete five choice sets and provided a range of implicit values of statistical life (VSL). The choices are estimated using the logit procedure. And, using the results of estimated multinomial logit model, the VSL is estimated to about $6.2 million.     

Admissible utility functions for health, longevity, and wealth: integrating monetary and life-year measures

The value of reducing health and mortality risks is often measured using value per statistical life (VSL) or one of several life-year measures (e.g., life years, quality-adjusted life years, disability-adjusted life years). I derive the utility function that is admissible when preferences for health and longevity, conditional on wealth, are consistent with any life-year measure (LYM) and examine the implications for marginal willingness to pay (WTP) for increases in health, longevity, and current-period survival probability. I conclude that marginal WTP for any LYM is decreasing and that VSL is increasing in the LYM. These results imply that cost-effectiveness analysis using a fixed monetary value per LYM is not consistent with economic welfare theory and that the benefit of a health improvement cannot be calculated by multiplying the change in a LYM by a constant.     

Policy relevant heterogeneity in the value of statistical life: New evidence from panel data quantile regressions

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 to7 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.     

Valuing the risk of workplace sexual harassment

Using data on sexual harassment charges filed with the Equal Employment Opportunity Commission, I calculate the risk of sexual harassment by gender, industry, and age and establish that white females, but not nonwhite females, receive a compensating wage differential for exposure to a higher risk of sexual harassment. I use this risk premium to calculate the value of statistical harassment (VSH) in a manner analogous to the calculation of the value of statistical life (VSL). The VSH is around $7.6 million, about three-quarters of the size of the most-commonly cited levels of the VSL, and far above the maximum damages award for sexual harassment available under federal law. Boosting the maximum damages award to equal the VSH would create the appropriate economic incentives for organizations to deter sexual harassment.     

Attitudes Toward Spousal Caregiving in Late Adulthood

Abstract

The study dealt with differences in attitudes toward spousal caregiving among pre-retired (n = 269) versus retired (n = 250) Israelis. Attitudes toward spousal caregiving at times of illness were examined from three perspectives: Commitment to caregiving, perceived harmful effects of caregiving, and delegation of responsibility for caregiving. Compared with the pre-retired group, the retirees revealed higher levels of commitment and showed less of a tendency to delegate responsibility for caregiving. At the same time, they perceived caregiving as having more harmful effects. In addition, different variables were found to explain these attitudes among both groups of participants. Among the pre-retired participants, equality in household tasks contributed most toward explaining commitment to spousal caregiving. Among the retired participants, in contrast, past assistance from the spouse was one of the most significant variables. For both groups of participants, past assistance from the spouse and equality in division of household tasks were the best predictors of perceived harmful effects. With regard to delegating responsibility for caregiving, the most salient variables among both groups of participants were marital tension and equality in division of household tasks. No gender-based differences were found in attitudes toward caregiving.     

The heterogeneity of the value of statistical life: Introduction and overview

The refinement in worker fatality risk data used in hedonic wage studies and evidence from new stated preference studies have facilitated the exploration of the heterogeneity of the value of statistical life (VSL). Although the median VSL estimate for workers is $7–$7–8 million, the VSL varies considerably within the worker population. New estimates of the income elasticity of VSL are 1.0 or above, which are consistent with theoretical models linking VSL to the coefficient of relative risk aversion. The specific relationship between VSL and risk aversion is, however, more complex than previously understood. Age differences in VSL are substantial, with young children being accorded especially high VSL amounts. The public’s willingness to pay to reduce risks is reduced if those being protected are perceived as being blameworthy due to their responsibility for contributing to the risk.     

Sex Differences in Household Involvement of the Unmarried

It has been posited that sex-role differentiation decreases and unisex patterns emerge in late life. Most research on household activities in old age, however, has studied couples. This study examines sex differences in household activities and sources of help of older, unmarried men and women; the relationship between household involvement and psychological well-being; and personal characteristics associated with household activities. Data were obtained from interviews with 341 men and women. Males and females without spouses managed their household roles somewhat differently both in the tasks they performed and sources from which they accepted help. Relationships between household involvement and well-being were positive for both sexes. But the gender-linked nature of household work persists inro very late life and is not eliminated by the absence of a spouse. Continued sex differentiation in tasks in later life has implications for the provision of formal and informal sources of help for the unmarried aged.     

Anchoring biases in international estimates of the value of a statistical life

U.S. labor market estimates of the value of a statistical life (VSL) were the first revealed preference estimates of the VSL in the literature and continue to constitute the majority of such market estimates. The VSL estimates in U.S. studies consequently may have established a reference point for the estimates that researchers analyzing data from other countries are willing to report and that journals are willing to publish. This article presents the first comparison of the publication selection biases in U.S. and international estimates using a sample of 68 VSL studies with over 1000 VSL estimates throughout the world. Publication selection biases vary across the VSL distribution and are greater for the larger VSL estimates. The estimates of publication selection biases distinguish between U.S. and international studies as well as between government and non-government data sources. Empirical estimates that correct for the impact of these biases reduce the VSL estimates, particularly for studies based on international data. This pattern of publication bias effects is consistent with international studies relying on U.S. estimates as an anchor for the levels of reasonable estimates. U.S. estimates based on the Census of Fatal Occupational Injuries constitute the only major set of VSL studies for which there is no evidence of statistically significant publication selection effects. Adjusting a baseline bias-adjusted U.S. VSL estimate of $9.6 million using estimates of the income elasticity of the VSL may be a sounder approach for generating international estimates of the VSL than relying on direct estimates from international studies.     

Willingness to accept equals willingness to pay for labor market estimates of the value of a statistical life

Our research clarifies the conceptual linkages among willingness to pay for additional safety, willingness to accept less safety, and the value of a statistical life (VSL). We present econometric estimates using panel data to analyze the VSL levels associated with job changes that may affect the worker’s exposure to fatal injury risks. Our baseline VSL estimates are $7.7 million and $8.3 million (Y$2001). There is no statistically significant divergence between willingness-to-accept VSL estimates associated with wage increases for greater risks and willingness-to-pay VSL estimates as reflected in wage changes for decreases in risk. Our focal result contrasts with the literature documenting a considerable asymmetry in tradeoff rates for increases and decreases in risk. An important implication for policy is that it is reasonable to use labor market estimates of VSL as a measure of the willingness to pay for additional safety.     

A successful conversion or double refusal: A study of the process of refusal conversion in telephone survey research

This study investigated factors that affect the outcome of refusal conversion efforts in telephone surveys. We used data collected from three types of forms filled out by telephone interviewers: a Refusal Report Form was filled out when the respondent/household member refused to do the survey at the initial contact, and a Refusal Conversion Report Form or a Double Refusal Report Form was filled out during the refusal conversion phase. These forms included information such as the degree of interaction between interviewer and respondent/household member, reasons for refusal, information about the survey revealed during the introduction, and demographics. Results from logistic regressions suggested that the degree of interviewer–respondent/household member interaction during the second call attempt significantly influenced the outcome of refusal conversions. Results also suggested that revealing information about the legitimacy of the survey did not affect the outcome, and that there might even be a “boomerang effect” if interviewers rush to reveal such information. While respondent/household member's age did not affect the outcome, women appeared to be more difficult to be converted than men, especially when the degree of interviewer–respondent/household member interaction is low. Implication of these results and direction for future research directions are also discussed.     

The Effects of Spousal Health on the Decision to Smoke: Evidence on Consumption Externalities, Altruism and Learning Within the Household

Married individuals are healthier than single individuals though the reasons are not well understood. Individuals with spouses/or partners are less likely to smoke. We explore the relationship between health and marital status by analyzing three potential channels through which marriage affects smoking, i.e., consumption externalities (one spouse's smoking affects the other spouse's welfare), altruism (one spouse reduces smoking in response to the other spouse's bad health), and learning about risks of smoking from the health experience of one's spouse. We find spousal health does not affect smoking due to altruism or learning within the household but do find evidence for consumption externalities.     

家庭经营的成本核算与经营决策：以白洋淀塑料加工户为例

在关于家庭经营的研究当中,有两个最经典的理论模型,一个是恰亚诺夫的“家庭农场模型”,一个是贝克尔的“家庭生产函数”。本文通过对河北白洋淀淀村塑料加工行业加工户进行成本核算和经营决策行为逻辑的研究发现,对于工业化过程中的家庭经营户来讲,虽然他们生产的是一般性“市场商品”,但是由于生产要素市场的不完善和家庭经营独特的组织方式,使得这些加工户的生产决策与消费决策不但是密不可分的,而且受到了与家庭生命周期相关的家庭结构的影响。家庭结构不但在很大程度上决定了一个家庭劳动力、住房、资本等生产要素的组合结构,而且影响了家庭生产与消费的不同组合模式,这一点不但影响了一个家庭在生产经营中的成本核算逻辑,而且影响了他们进行产业选择的经营决策。     

Depressive Symptoms among Former Spousal Caregivers: Comparing Stressors,Resources, and Circumstances of Caregiving Cessation among Older Husbands and Wives

Little research focuses on the mental health of caregivers (CGs) who stop providing care to their community-dwelling spouse. We examine depressive symptoms of former primary CG spouses who stopped caregiving over a two-year follow-up period when the care recipient (CR): (1) no longer has functional problems; (2) continues having functional problems; or (3) dies. Using data from the Health and Retirement Study (2000–2014), we located 2,370 couples who were both 50+ at baseline and where one partner provided help with ADL and/or IADL limitations but did not do so two years later. OLS regressions stratified by gender indicated that both male and female former spousal CGs whose CR died had significantly more depressive symptoms than those who ceased caregiving when their spouse did or did not still have functional problems. Former wife CGs who were older and whose husbands had more baseline ADLs had fewer follow-up depressive symptoms; wife CGs whose husbands had a nursing home stay had more depressive symptoms. Former husband CGs who had provided longer monthly hours of care had fewer follow-up symptoms. Findings underscore the importance of targeting mental and physical health services to both former caregiving husbands and wives, especially after spousal death.