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

Viscusi, W. Kip; Masterman, Clayton J.

doi:10.1007/s11166-017-9255-1

Cited by 48 publications

(33 citation statements)

References 43 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As a result, in the absence of detailed and accurate data on workplace fatalities, VSL estimates will suffer from attenuation and publication selection biases (Viscusi, 2015). These biases are even more prevalent in non-U.S. labor market studies than U.S. studies (Viscusi & Masterman, 2017). While some of the bias in non-U.S. VSL estimates is attributable to data deficiencies, much of the rampant publication selection bias in international estimates exists because non-U.S. researchers anchor on U.S. estimates of the VSL (Viscusi & Masterman, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…These biases are even more prevalent in non-U.S. labor market studies than U.S. studies (Viscusi & Masterman, 2017). While some of the bias in non-U.S. VSL estimates is attributable to data deficiencies, much of the rampant publication selection bias in international estimates exists because non-U.S. researchers anchor on U.S. estimates of the VSL (Viscusi & Masterman, 2017). 3 To the extent that stated preference studies are also subject to biases from the use of U.S. evidence as an anchor for what values are reasonable and merit publication, these estimates likewise may suffer from publication selection effects.…”

Section: Introductionmentioning

confidence: 99%

“…More research is needed to determine the extent to which stated preference VSL studies also suffer from publication selection biases. Fortunately, U.S. VSL estimates that utilize the Census of Fatal Occupational Injuries (CFOI) data are not subject to many of the biases that plague VSL estimates using other data, both in the United States and internationally (Viscusi, 2015, 2017; Viscusi & Masterman, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…Section 2 presents a brief summary of our preferred VSL and existing estimates of the income elasticity of the VSL in the literature. The preferred base VSL of $9.6 million for our calculations is the estimate from U.S. CFOI studies after controlling for publication selection bias drawn from Viscusi (2015) and Viscusi and Masterman (2017). 5 Given the absence of substantial publication selection biases for VSL studies using the CFOI data, others may prefer either the mean or median CFOI estimates without bias adjustments, and we present those as well.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Income Elasticities and Global Values of a Statistical Life

Viscusi¹,

Masterman²

2017

J. Benefit Cost Anal.

273

244

View full text Add to dashboard Cite

Abstract:Countries throughout the world use estimates of the value of a statistical life (VSL) to monetize fatality risks in benefit-cost analyses. However, the vast majority of countries lack reliable revealed preference or stated preference estimates of the VSL. This article proposes that the best way to calculate a populationaverage VSL for countries with insufficient or unreliable data is to transfer a base VSL from the United States calculated using labor market estimates from Census of Fatal Occupational Injuries data, coupled with adjustments for differences in income between the United States and the country of interest. This approach requires estimation of two critical inputs: a base U.S. VSL and the income elasticity of the VSL. Drawing upon previous meta-analyses that include adjustments for publication selection biases, we adopt a base VSL of $9.6 million. We utilize a sample of 953 VSL estimates from 68 labor market studies of the VSL covering fourteen lower-middle income to high income nations. We estimate the income elasticity of the VSL within the United States to be from 0.5 to 0.7 and to be just above 1.0 for non-U.S. countries. Quantile regression reveals that much of the disparity in income elasticities is attributable to income differences between the United States and other countries, as the income elasticity increases for lower income populations. Using income classifications from the World Bank, we calculate average VSLs in lower income, lower-middle income, upper-middle income, and upper income countries to be $107,000, $420,000, $1.2 million, and $6.4 million, respectively. We also present VSL estimates for all 189 countries for which World Bank income data are available, yielding a VSL range from $45,000 to $18.3 million.

show abstract

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Income Elasticities and Global Values of a Statistical Life

Viscusi¹,

Masterman²

2017

J. Benefit Cost Anal.

273

244

View full text Add to dashboard Cite

show abstract

“…For such social impacts, economists estimate shadow prices, that is, the price that the impact would be in a well-functioning market if one existed. Viscusi and Masterman (2017a) analyze many estimates of the value of a statistical life (VSL). Recently, Vining and Weimer (2019) estimate the social benefit of high school graduation in the United States.…”

Section: Introductionmentioning

confidence: 99%

The Social Cost of Informal Electronic Waste Processing in Southern China

Boardman

Geng²,

Lam

2020

Administrative Sciences

View full text Add to dashboard Cite

Large amounts of e-waste are processed “informally” in lower income countries. Such processing releases dangerous pollutants, which increase mortality and reduce cognitive functioning. This paper estimates the social cost of informal e-waste processing in Southern China. This parameter may be “plugged-in” to cost-benefit analyses that evaluate the economic efficiency of policies to reduce informal e-waste processing in China or other lower income countries. It may also be used in the estimation of the social benefits (or costs) of new or proposed e-waste processing policies in higher income countries. We estimate that the social cost of informal e-waste processing in Guiyu is about $529 million. This amount is equivalent to about $423 per tonne (in 2018 US dollars) or $3528 per person, which is over half the gross income per capita of the residents of Guiyu. We also perform sensitivity analysis that varies the estimated mortality outcomes, the value of a statistical life and the amount of e-waste processed.

show abstract

Consistent valuation of a reduction in mortality risk using values per life, life year, and quality‐adjusted life year

Hammitt

2023

Health Economics

View full text Add to dashboard Cite

The monetary value of a reduction in mortality risk can be accurately characterized using the alternative concepts of value per statistical life (VSL), value per statistical life year (VSLY), and value per quality-adjusted life year (VQALY). Typically, each of these values depends on the age and other characteristics of the affected individual; at most one of the values can be independent of age. The common practice of valuing a transient or persistent risk reduction using a constant VSL, VSLY, or VQALY yields systematic differences in the calculated monetary value that depend on the age at which the risk reduction begins, its duration, time path, and whether future lives, life years, or quality-adjusted life years are discounted.Mutually consistent, age-dependent VSL, VSLY, and VQALY are derived and the large differences in valuation of illustrative transient and persistent risk reductions that can result from assuming age-independent values of each of the three concepts are illustrated.

show abstract

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

Cited by 48 publications

References 43 publications

Income Elasticities and Global Values of a Statistical Life

Income Elasticities and Global Values of a Statistical Life

The Social Cost of Informal Electronic Waste Processing in Southern China

Consistent valuation of a reduction in mortality risk using values per life, life year, and quality‐adjusted life year

Contact Info

Product

Resources

About