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Regional Differences in the Value of Statistical Life

Author

Listed:
  • Hua Zan

    (University of Hawaii at Manoa)

  • Robert L. Scharff

    (The Ohio State University)

Abstract

The value of statistical life (VSL) is a measure of people’s willingness to trade off wealth for risk. With few exceptions, analysts apply uniform VSL estimates to consumer policy evaluations, regardless of the characteristics of the targeted population. Using the hedonic wage approach, this study examines regional differences in VSL in the USA, reflecting variations in wealth, demographics, and preferences across the states. Census division differences are discovered, with higher VSLs in richer divisions and lower VSLs in poorer divisions.

Suggested Citation

  • Hua Zan & Robert L. Scharff, 2017. "Regional Differences in the Value of Statistical Life," Journal of Consumer Policy, Springer, vol. 40(2), pages 157-176, June.
    • Handle: RePEc:kap:jcopol:v:40:y:2017:i:2:d:10.1007_s10603-017-9347-y
    DOI: 10.1007/s10603-017-9347-y
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    References listed on IDEAS

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    1. Joseph E. Aldy & W. Kip Viscusi, 2008. "Adjusting the Value of a Statistical Life for Age and Cohort Effects," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 573-581, August.
    2. Evans, Mary F. & Schaur, Georg, 2010. "A quantile estimation approach to identify income and age variation in the value of a statistical life," Journal of Environmental Economics and Management, Elsevier, vol. 59(3), pages 260-270, May.
    3. W. Viscusi, 2010. "The heterogeneity of the value of statistical life: Introduction and overview," Journal of Risk and Uncertainty, Springer, vol. 40(1), pages 1-13, February.
    4. Thomas Kniesner & W. Viscusi & James Ziliak, 2010. "Policy relevant heterogeneity in the value of statistical life: New evidence from panel data quantile regressions," Journal of Risk and Uncertainty, Springer, vol. 40(1), pages 15-31, February.
    5. Joseph E. Aldy & W. Kip Viscusi, 2007. "Age Differences in the Value of Statistical Life: Revealed Preference Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 1(2), pages 241-260, Summer.
    6. Viscusi, W Kip, 1993. "The Value of Risks to Life and Health," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1912-1946, December.
    7. Richardson, D.B. & Loomis, D. & Bena, J. & Bailer, A.J., 2004. "Fatal occupational injury rates in southern and non-southern states, by race and Hispanic ethnicity," American Journal of Public Health, American Public Health Association, vol. 94(10), pages 1756-1761.
    8. Thomas J. Kniesner & W. Kip Viscusi, 2005. "Value of a Statistical Life: Relative Position vs. Relative Age," American Economic Review, American Economic Association, vol. 95(2), pages 142-146, May.
    9. Joni Hersch & W. Kip Viscusi, 2010. "Immigrant Status and the Value of Statistical Life," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    10. Hammitt James K. & Robinson Lisa A, 2011. "The Income Elasticity of the Value per Statistical Life: Transferring Estimates between High and Low Income Populations," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(1), pages 1-29, January.
    11. Viscusi, W Kip, 2003. "Racial Differences in Labor Market Values of a Statistical Life," Journal of Risk and Uncertainty, Springer, vol. 27(3), pages 239-256, December.
    12. Hammitt James K. & Robinson Lisa A, 2011. "The Income Elasticity of the Value per Statistical Life: Transferring Estimates between High and Low Income Populations," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(1), pages 1-29, January.
    13. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
    14. Kip Viscusi, W. & Aldy, Joseph E., 2007. "Labor market estimates of the senior discount for the value of statistical life," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 377-392, May.
    15. Bellavance, Franois & Dionne, Georges & Lebeau, Martin, 2009. "The value of a statistical life: A meta-analysis with a mixed effects regression model," Journal of Health Economics, Elsevier, vol. 28(2), pages 444-464, March.
    16. W. Kip Viscusi, 2004. "The Value of Life: Estimates with Risks by Occupation and Industry," Economic Inquiry, Western Economic Association International, vol. 42(1), pages 29-48, January.
    17. repec:reg:rpubli:282 is not listed on IDEAS
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    Cited by:

    1. Barrientos, Manuel & Lavin, Felipe Vasquez & Ponce Oliva, Roberto D., 2020. "Assessing the Incorporation of Latent Variables in the Estimation of the Value of a Statistical Life," EfD Discussion Paper 20-22, Environment for Development, University of Gothenburg.
    2. Lavin, Felipe Vasquez & Bratti, Luna & Orrego, Sergio & Barrientos, Manuel, 2020. "Assessing the Use of Pseudo-panels to Estimate the Value of Statistical Life in Developing Countries," EfD Discussion Paper 20-20, Environment for Development, University of Gothenburg.
    3. N. Witvorapong & T. Komonpaisarn, 2020. "The Value of a Statistical Life in Thailand: Evidence from the Labour Market," Journal of Consumer Policy, Springer, vol. 43(3), pages 491-518, September.

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