The Value of the Risk to Life in the Context of Crime

Abstract

The value of the risk to life is a key element for benefit-cost analysis, enabling more rational public policy decisions in diverse areas as environmental, health, and crime. We value the risk to life in the context of crime using a discrete choice experiment (CE). The method has clear advantages in that it applies to the whole population and does not require vast data from labor markets, for example. Such data are not always available even in developed economies. Combining the stated preference approach with contingent valuation (CV), CE offer advantages yet to be explored in the context of crime. We demonstrate the application in a developing economy, where similar valuations are not available. The best estimate obtained for Argentina is an average of 1.5 million in 2015 US dollars per statistical life with a confidence interval ($1.1–$2.3). This result is consistent with estimates for the developed world, after appropriate transfer. We also analyze demographic factors in the risk to life, finding a positive influence of income, risk aversion, previous victimization experience and family size on the value of a statistical life, as well as a negative impact of individualism.

Incidence and Costs of Personal and Property Crimes in the USA, 2017

“…It excludes the cost of avoidance behaviors (e.g., burglar alarms or avoiding certain high-risk neighborhoods) and the fear of crime to the public at large (see e.g., Cohen, 2020). Thus, costs estimated here are notably smaller (as much as 50-80 % less) than one would obtain using more comprehensive willingness-to-pay estimates from contingent valuation surveys (see e.g., Cohen et al, 2004;Cohen, 2015) or discrete choice experiments (see e.g., Carson & Louviere, 2017;Picasso & Cohen, 2019;Picasso & Grand, 2019). However, the method used in this paper has the advantage of identifying individual cost components and who bears those costsas opposed to the more aggregate approaches based on willingness-to-pay.…”

Benefit–Cost Analysis of Social Media Facilitated Bystander Programs

“…Stated preferences methods use surveys to ask respondents for their subjective willingness-to-pay. Picasso & Grand (2019) use discrete choice experiments to estimate the willingness-to-pay for a reduction in homicide risk. Picasso & Cohen (2019) extend the approach by including the risk of violent crime.…”

“…Because of the stated reasons, revealed preferences methods are difficult to implement in practice. This makes stated preference approaches the usual choice (Cohen & Bowles, 2010;Picasso & Cohen, 2019;Picasso & Grand, 2019).…”