Valuing Life at Gunpoint

Details

Serval ID
serval:BIB_6CEE6D60B3DE
Type
Report: a report published by a school or other institution, usually numbered within a series.
Publication sub-type
Working paper: Working papers contain results presented by the author. Working papers aim to stimulate discussions between scientists with interested parties, they can also be the basis to publish articles in specialized journals
Collection
Publications
Institution
Title
Valuing Life at Gunpoint
Author(s)
Hugonnier J., Pelgrin F., St-Amour P.
Institution details
HEC Lausanne
Issued date
2017
Language
english
Abstract
The Human Capital (HK), and Statistical Life Values (VSL) lack a common theoretical background, and di_er sharply in their empirical pricing of a human life. This paper makes four contributions to the theory, and measurement of the latter. First, we provide a uni_ed framework to formally de_ne, and relate the HK, and the VSL. Second, we use this setting to introduce a third life value calculated at Gunpoint (GPV), i.e. the maximal Hicksian willingness to pay to avoid certain, instantaneous death. Third, we associate a exible human capital model to the common framework to characterize the three life valuations in closed-form. Fourth, we structurally estimate the three life values. Our results con_rm the relevance of reduced-form HK, and VSL estimates, identify the role of technological, distributional, and preferences parameters, and clarify the formal links between the alternative valuations.
Keywords
Values of Human Life, Human Capital, Value of Statistical Life, Willingness to pay, Equivalent Variation, Endogenous Morbidity, Endogenous Mortality, Structural
Create date
19/10/2017 10:34
Last modification date
21/08/2019 5:13
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