scholarly journals The Income Elasticity of Global Values of a Statistical Life: Stated Preference Evidence

2018 ◽  
Vol 9 (3) ◽  
pp. 407-434 ◽  
Author(s):  
Clayton J. Masterman ◽  
W. Kip Viscusi
Keyword(s):  
Income Elasticity ◽  
Stated Preference ◽  
Sample Selection ◽  
Revealed Preference ◽  
Sample Selection Bias ◽  
Lower Income ◽  
Income Levels ◽  
Statistical Life ◽  
Per Capita ◽  
Global Values

Examination of estimates of the income elasticity of the value of a statistical life based on international stated preference studies yields an average between 0.94 and 1.05 overall and 0.65 and 0.80 after controlling for covariates. Quantile regression estimates indicate that the income elasticity is about 0.55 for more affluent countries and 1.0 for lower income nations, i.e., those countries that have estimates of the value of a statistical life below $2 million or per capita income levels below $3212. The estimates distinguish the values of the income elasticity across country either by income level or by the value of a statistical life. These elasticities are similar to those found in revealed preference labor market studies. The estimates are robust, controlling for possible sample selection bias and the influence of covariates, such as the type of risk.

scholarly journals The Mechanics of Regime Instability in Latin America

2009 ◽  
Vol 1 (1) ◽  
pp. 5-36 ◽  
Author(s):  
Adam Przeworski
Keyword(s):  
Latin America ◽  
Capita Income ◽  
Lower Income ◽  
Per Capita Income ◽  
Income Levels ◽  
Per Capita ◽  
Past Experiences

The paper is narrowly addressed to a single puzzle: How did it happen that countries that attempted to install democracy earlier enjoyed it less frequently? Regime dynamics are driven by two mechanisms: (1) Democracies become more durable as per capita income increases, and (2) Past experiences with democracy destabilize both democracies and autocracies. As a result, countries that experiment with democracy at lower income levels experience more regime instability. Moreover, until they reach some income threshold, at any time such countries are less likely to be democratic than countries that first enter democracy when they have higher incomes. Hence, paradoxically, the resistance of European monarchies against democracy resulted in democracies that were more stable than those following post-independence attempts in Latin America.

scholarly journals Valuing Mortality Risk Reductions in Global Benefit-Cost Analysis

2019 ◽  
Vol 10 (S1) ◽  
pp. 15-50 ◽  
Author(s):  
Lisa A. Robinson ◽  
James K. Hammitt ◽  
Lucy O’Keeffe
Keyword(s):  
Mortality Risk ◽  
Income Elasticity ◽  
Lower Income ◽  
Middle Income ◽  
Income Differences ◽  
Benefit Cost Analysis ◽  
Middle Income Countries ◽  
Statistical Life ◽  
The Past ◽  
Benefit Cost

The estimates used to value mortality risk reductions are a major determinant of the benefits of many public health and environmental policies. These estimates (typically expressed as the value per statistical life, VSL) describe the willingness of those affected by a policy to exchange their own income for the risk reductions they experience. While these values are relatively well studied in high-income countries, less is known about the values held by lower-income populations. We identify 26 studies conducted in the 172 countries considered low- or middle-income in any of the past 20 years; several have significant limitations. Thus there are few or no direct estimates of VSL for most such countries. Instead, analysts typically extrapolate values from wealthier countries, adjusting only for income differences. This extrapolation requires selecting a base value and an income elasticity that summarizes the rate at which VSL changes with income. Because any such approach depends on assumptions of uncertain validity, we recommend that analysts conduct a standardized sensitivity analysis to assess the extent to which their conclusions change depending on these estimates. In the longer term, more research on the value of mortality risk reductions in low- and middle-income countries is essential.

VP95 The Monetary Value Of A Statistical Life Year: A Systematic Review

2017 ◽  
Vol 33 (S1) ◽  
pp. 192-193
Author(s):  
Michael Schlander ◽  
Oliver Schwarz ◽  
Ramon Schaefer
Keyword(s):  
Systematic Review ◽  
Discount Rate ◽  
Stated Preference ◽  
Economic Value ◽  
Revealed Preference ◽  
Cost Benefit ◽  
Original Research ◽  
Statistical Life ◽  
Empirical Estimates ◽  
Widespread Agreement

INTRODUCTION:Among economists, there is widespread agreement that the monetary valuation of health gains should reflect the preferences of those who will be affected by resource allocation decisions. In the context of Health Technology Assessments (HTAs), this view implies a need for reliable empirical estimates of the value of statistical life year (VSLY), which should provide a useful point of reference for cost benefit analyses.METHODS:We conducted a systematic review of the literature on the economic value of a statistical life (VSL). We searched in the EconBiz and EconLit databases for studies, which reported VSL estimates based on original research and were published between 1995 and 2015. We classified studies by methodology, that is, revealed preference (RP) or stated preference (SP; that is, CV, contingent valuation, or DCE (discrete choice experiment) approach, and by regional origin of data. We transformed VSL estimates into VSLY expressed in year 2014 Euros, using life expectancy tables for the populations studied, a real discount rate of 3 percent, national Consumer Price Indices for inflating, and purchasing power parities for currency conversion. In addition, we calculated ratios of VSLY to gross domestic product (GDP) per capita.RESULTS:Our search yielded 120 studies appropriate for inclusion. From these, we extracted a total of 132 VSL estimates (RP, n = 60; SP, n = 72). The median VSLY was 6.4 times GDP/capita. Transformed into Euro (2014), the median VSLY was EUR165,000 (mean, EUR217,000). We found significant differences by regional source of data (North American, median EUR272,000; European, EUR158,000) and by method (RP, EUR241,000; SP: CV, EUR117,000; DCE, EUR187,000). VSLY estimates were sensitive to discount rate.CONCLUSIONS:Our data indicate that VSLY estimates based on empirical data exceed benchmarks commonly used in the context of HTAs. However, inter-study variability, methodological limitations, and normative considerations, all suggest to exercise caution before translating this observation into actual policy.

Correcting for Sample Selection Bias in Stated Preference Tourist Surveys

2006 ◽  
Vol 12 (3) ◽  
pp. 451-468 ◽  
Author(s):  
Alexandros Apostolakis ◽  
Shabbar Jaffry
Keyword(s):  
Selection Bias ◽  
Stated Preference ◽  
Sample Selection ◽  
Sample Selection Bias

scholarly journals Income Elasticities and Global Values of a Statistical Life

2017 ◽  
Vol 8 (2) ◽  
pp. 226-250 ◽  
Author(s):  
W. Kip Viscusi ◽  
Clayton J. Masterman
Keyword(s):  
United States ◽  
Labor Market ◽  
World Bank ◽  
Income Elasticity ◽  
The United States ◽  
Lower Income ◽  
Middle Income ◽  
Statistical Life ◽  
Income Elasticities ◽  
The World

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 population-average 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.

scholarly journals Who gains from economic freedom? A panel analysis on decile income levels

2021 ◽  
Vol 10 (2) ◽  
pp. 102-106
Author(s):  
Robert Lawson ◽  
James Dean
Keyword(s):  
Economic Freedom ◽  
Developing Nations ◽  
Panel Analysis ◽  
Lower Income ◽  
Income Levels ◽  
Income Per Capita ◽  
Per Capita ◽  
The Impact

This paper revisits Saccone’s (2020) analysis of the impact of economic freedom on decile income shares for a panel of developed and developing nations during 1980-2014. Saccone found that higher levels of economic freedom corresponded with lower income shares for the bottom 8 deciles and higher shares only for the top 2 deciles. Instead of decile income shares, this paper focuses on the impact of economic freedom on decile income levels. We find that the income per capita for all 10 deciles increases as economic freedom increases.

The Territorial Redistributive Power of the EU Budget: Empirical Evidence at National and Regional Levels

10.1068/c0038 ◽  
2001 ◽  
Vol 19 (5) ◽  
pp. 771-790 ◽  
Author(s):  
Marta Espasa
Keyword(s):  
European Union ◽  
Capita Income ◽  
Income Elasticity ◽  
National Income ◽  
The European Union ◽  
Income Levels ◽  
Fiscal Balance ◽  
Per Capita ◽  
The Impact ◽  
The Eu

The author's purpose is to estimate the redistributive power of the European Union budget among the European countries and regions. The analysis is focused on the main items of revenue, expenditure, and net fiscal balance. First, the income elasticity of the European Union revenues, expenditures, and fiscal balance are estimated in order to examine the degree to which these instruments are progressive. Second, the impact of these instruments in the regional and national income is analysed with the objective of evaluating the capacity to reduce differences in per capita income levels.

OP95 An Update On The Economic Value Of A Statistical Life Year In Europe

2017 ◽  
Vol 33 (S1) ◽  
pp. 44-44
Author(s):  
Michael Schlander ◽  
Ramon Schaefer ◽  
Oliver Schwarz
Keyword(s):  
Stated Preference ◽  
Statistical Significance ◽  
Economic Value ◽  
Consumer Price Index ◽  
Revealed Preference ◽  
Reference Value ◽  
Original Data ◽  
Quality Adjusted Life Year ◽  
Statistical Life ◽  
Data Capturing

INTRODUCTION:Evaluation of “value for money” is an important component of Health Technology Assessments (HTAs). It is often conceptualized as “cost effectiveness” or cost per (quality-adjusted) life year gained. Whether used in isolation or alongside further drivers of social value (such as priority for younger or more severely impaired patient groups, or for access to effective treatment, even if costly), for example within a multi-criteria decision analysis framework, any reference “value of a statistical life year” (VSLY) should be supported by empirical data capturing the preferences of the population(s) in question. Here we report results based on a systematic review of relevant European economic studies, which were published during the last two decades, that is, from 1995 to 2015.METHODS:Our literature search (using the EconBiz and EconLit databases, supplemented by an analysis of relevant reviews) identified fourty-one European studies providing original data, yielding a total of fourty-eight average estimates for the value of a statistical life (VSL, or fatality prevented). We classified studies by methodology, for example, revealed preference (RP) or stated preference (contingent valuation, CV; discrete choice experiment, DCE) approach. We transformed VSL estimates into VSLY expressed in year 2014 Euros, using the life expectancy of the populations studied, a real discount rate of 3 percent, the national Consumer Price Index (CPI) for inflating, and purchasing power parities for currency conversion. We calculated confidence intervals by means of nonparametric bootstrapping.RESULTS:The median VSLY was EUR158,000 (for RP studies, EUR218,000; DCE, EUR188,000; CV, EUR143,000); we did not identify studies using the human capital approach. Our VSLY estimates showed large heterogeneity, both by methodology and regional origin; thus the differences that we observed did not reach statistical significance.CONCLUSIONS:Our results suggest that the empirical willingness-to-pay for a statistical life year might be substantially higher than benchmarks currently used by the international HTA community.

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