Document Type
Article
Publication Title
American Law and Economics Review
Publication Date
2000
ISSN
1465-7252
Page Number
195
Keywords
life valuation, risks, damages, hedonic damages
Disciplines
Insurance Law | Law
Abstract
Value of life issues traditionally pertain to insurance of the losses of accident victims, for which replacement of the economic loss is often an appropriate concept. Deterrence measures of the value of life focus on risk-money tradeoffs involving small changes in risk. Using market data for risky jobs and product risk contexts often yields substantial estimates of the value of life in the range of $3 million to $9 million. These estimates are useful in providing guidance for regulatory policy and assessments of liability. However, use of these values to determine compensation, known as hedonic damages, leads to excessive insurance.
Recommended Citation
W. Kip Viscusi,
The Value of Life in Legal Contexts: Survey and Critique, 2 American Law and Economics Review. 195
(2000)
Available at: https://scholarship.law.vanderbilt.edu/faculty-publications/137