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Behavioral Economics and the Value of a Statistical Life

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  • Kniesner, Thomas J.

    (Claremont Graduate University)

Abstract

There are many possible connections between VSL and behavioral economics. A list of topics includes endowment effects, risk salience, ambiguity aversion, present bias, reference groups, reference points, and experienced versus decision utilities. There are also nudges that connect to estimating or using VSL in government decisions and cousins of behavioral economic research including interpersonal heterogeneity, experiments, neuroeconomics, and beauty or personal attractiveness. Current evidence suggests that VSL and behavioral economics best connect via (1) possible multi-attribute reference group effects and (2) a possible distinction between decision utility and experienced utility.

Suggested Citation

  • Kniesner, Thomas J., 2019. "Behavioral Economics and the Value of a Statistical Life," IZA Discussion Papers 12280, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12280
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    References listed on IDEAS

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    4. Zijia Zhong & Lei Zhu & Stanley Young, 2020. "Approximation Framework of Embodied Energy of Safety: Insights and Analysis," Energies, MDPI, vol. 13(16), pages 1-20, August.
    5. Mark C. Long, 2022. "Altruism and the Statistical Value of Human Life for Policy and Regulation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 341-355, February.
    6. Martin S. Eichenbaum & Sergio Rebelo & Mathias Trabandt, 2022. "Inequality in Life and Death," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 70(1), pages 68-104, March.
    7. Jiakun Zheng, 2021. "Willingness to pay for reductions in health risks under anticipated regret," Post-Print hal-04227414, HAL.
    8. Łukasz Kuźmiński & Michał Nadolny & Henryk Wojtaszek, 2020. "Probabilistic Quantification in the Analysis of Flood Risks in Cross-Border Areas of Poland and Germany," Energies, MDPI, vol. 13(22), pages 1-16, November.
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    11. Janjala Chirakijja & Seema Jayachandran & Pinchuan Ong, 2024. "The Mortality Effects of Winter Heating Prices," The Economic Journal, Royal Economic Society, vol. 134(657), pages 402-417.
    12. Casey B. Mulligan, 2021. "Peltzman Revisited: Quantifying 21st Century Opportunity Costs of FDA Regulation," NBER Working Papers 29574, National Bureau of Economic Research, Inc.
    13. Thomas J. Kniesner & Ryan Sullivan, 2020. "The forgotten numbers: A closer look at COVID-19 non-fatal valuations," Journal of Risk and Uncertainty, Springer, vol. 61(2), pages 155-176, October.
    14. Rebecca Newman & Ilan Noy, 2023. "The global costs of extreme weather that are attributable to climate change," Nature Communications, Nature, vol. 14(1), pages 1-13, December.
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    16. Stephen C. Newbold & David Finnoff & Linda Thunström & Madison Ashworth & Jason F. Shogren, 2020. "Effects of Physical Distancing to Control COVID-19 on Public Health, the Economy, and the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 705-729, August.
    17. Zheng, Jiakun, 2021. "Willingness to pay for reductions in health risks under anticipated regret," Journal of Health Economics, Elsevier, vol. 78(C).
    18. Steffen Juranek & Floris T. Zoutman, 2021. "The effect of non-pharmaceutical interventions on the demand for health care and on mortality: evidence from COVID-19 in Scandinavia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(4), pages 1299-1320, October.
    19. 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.
    20. St-Amour, Pascal, 2024. "Valuing life over the life cycle," Journal of Health Economics, Elsevier, vol. 93(C).
    21. Feng Chen, 2023. "Does paid family leave save infant lives? Evidence from California's paid family leave program," Contemporary Economic Policy, Western Economic Association International, vol. 41(2), pages 319-337, April.
    22. Fletcher, Jason & Noghanibehambari, Hamid, 2024. "The siren song of cicadas: Early-life pesticide exposure and later-life male mortality," Journal of Environmental Economics and Management, Elsevier, vol. 123(C).
    23. W. Kip Viscusi, 2019. "Risk guideposts for a safer society: Introduction and overview," Journal of Risk and Uncertainty, Springer, vol. 58(2), pages 101-119, June.
    24. Liang Tan & Aochen Cao & Dongyang Qiu & Bolin Liang, 2023. "Life Value Assessment Methods in Emerging Markets: Evidence from China," Sustainability, MDPI, vol. 15(10), pages 1-13, May.

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    More about this item

    Keywords

    VSL; behavioral economics; WTP; WTA; reference dependence; benefit-cost analysis; nudge; internality;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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