Defining the value of a statistical life: a comment.
In a recent paper [J. Hlth. Econom. 20 (2001) 131] Per-Olov Johansson claims to demonstrate that a commonly used intuitive definition of the value of a statistical life (VSL) is wrong, and that empirical estimates of VSLs are biased estimators of what he defines as the theoretically correct concept of the value of saving a life. In this comment I first argue in favor of a theoretically correct concept that is different from Johansson's because it incorporates the risk of death into the individual's lifetime budget constraint. I then show that the common intuitive definition of a VSL in fact is consistent with the theoretically correct concept and thus, provides an appropriate empirical basis for estimating the value to society of mortality-reducing projects.
Blomqvist
Ake
A
Applied Research and Analysis Directorate, Health Canada, and Department of Economics, University of Western Ontario, London. akeb@uwo.ca
D003627:Data Interpretation, Statistical; D006801:Humans; D008017:Life Expectancy; D008722:Methods; D017059:Models, Econometric; D009026:Mortality; D019057:Quality-Adjusted Life Years; D014481:United States; D026712:Value of Life / Q000191:economics*