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Value of statistical life: A meta analysis with mixed effects regression model

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  • Majumder, Agamoni
  • Madheswaran, S.

    (Institute for Social and Economic Change)

Abstract

Value of Statistical Life (VSL) is a concept which was born out of political interest but later started serving as a policy instrument. Viscusi (2003) in his grand compilation of over 100 studies has broadly discussed the issues, methods and controversies related to VSL. This paper is an extension to his work in the sense that it intends to compile more literature on VSL from 2003 till 2015. After 2003, many new developments took place in VSL literature which has been reviewed and presented in this paper. This critical review of literature incorporates various econometric issues with estimation of VSL besides addressing various other issues like role of unionization and effects of worker’s compensation benefits on risk premiums, heterogeneity issues of VSL and existence of segmented labour markets. VSL values estimated from different studies are not uniform and the source of this variability needs to be understood in order to guide present and future policy making. This article presents a meta-analysis based on 34 observations from 30 VSL studies which have used hedonic wage method to estimate VSL. Our meta-analysis based on mixed effects regression method suggests that the emerging areas such as the effect of worker’s age, compensation benefits and long–term health-related job risk need to be explored further when VSL is estimated

Suggested Citation

  • Majumder, Agamoni & Madheswaran, S., 2016. "Value of statistical life: A meta analysis with mixed effects regression model," Working Papers 362, Institute for Social and Economic Change, Bangalore.
    • Handle: RePEc:sch:wpaper:362
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    References listed on IDEAS

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    1. Eeckhoudt, Louis R. & Hammitt, James K., 2004. "Does risk aversion increase the value of mortality risk?," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 13-29, January.
    2. Glenn C. Blomquist, 2004. "Self-Protection and Averting Behavior, Values of Statistical Lives, and Benefit Cost Analysis of Environmental Policy," Review of Economics of the Household, Springer, vol. 2(1), pages 89-110, March.
    3. Fredrik Carlsson & Olof Johansson-Stenman & Peter Martinsson, 2004. "Is Transport Safety More Valuable in the Air?," Journal of Risk and Uncertainty, Springer, vol. 28(2), pages 147-163, March.
    4. 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.
    5. Orley Ashenfelter & Michael Greenstone, 2004. "Using Mandated Speed Limits to Measure the Value of a Statistical Life," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages 226-267, February.
    6. H. Spencer Banzhaf, 2014. "Retrospectives: The Cold-War Origins of the Value of Statistical Life," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 213-226, Fall.
    7. Joseph E. Aldy & W. Kip Viscusi, 2004. "Age Variations in Workers' Value of Statistical Life," NBER Working Papers 10199, National Bureau of Economic Research, Inc.
    8. Alan Krupnick, 2007. "Mortality-risk Valuation and Age: Stated Preference Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 1(2), pages 261-282, Summer.
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    Cited by:

    1. Agamoni Majumder & S Madheswaran, 2018. "Value of statistical life in India: A hedonic wage approach," Working Papers 407, Institute for Social and Economic Change, Bangalore.
    2. А. Zubets N. & А. Novikov V. & А. Зубец Н. & А. Новиков В., 2018. "Численная Оценка Стоимости Жизни Человека В России И В Мире // Quantitative Assessment Of The Value Of Human Life In Russia And In The World," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 22(4), pages 52-75.

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