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Assessing the Use of Pseudo-panels to Estimate the Value of Statistical Life in Developing Countries

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  • Lavin, Felipe Vasquez
  • Bratti, Luna
  • Orrego, Sergio
  • Barrientos, Manuel

Abstract

In this paper, we estimate the Value of Statistical Life (VSL) for Chile, Colombia, and the United States using a hedonic wage model and a pseudo-panel approach. The VSL is a major component of costbenefit analysis of many policies including public health, transportation safety, and environmental regulation. Using pseudo-panels, also known as synthetic cohort data, to estimate the VSL is relevant for low- and middle-income countries, because many do not have panel data but do have repeated crosssectional information. We conclude that the pseudo-panel approach is a suitable alternative to estimate the VSL when panel data is not available.

Suggested Citation

  • 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.
    • Handle: RePEc:hhs:gunefd:2020_020
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    More about this item

    Keywords

    value of statistical life; hedonic price model; pseudo-panels;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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