RT Journal Article
SR Electronic
T1 Self-Protection and Value of Statistical Life Estimation
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 100
OP 113
DO 10.3368/le.81.1.100
VO 81
IS 1
A1 Shogren, Jason F.
A1 Stamland, Tommy
YR 2005
UL http://le.uwpress.org/content/81/1/100.abstract
AB Self-protection has been used to help define lower bounds on the value of statistical life (VSL). We show circumstances exist in which (1) the lower bounds are so low as to be more misleading than informative; and (2) the bound is an upper bound on the population’s average VSL. The relationship between the bound and VSL depends on the degree and nature of individual heterogeneity, the fraction of the population buying self-protection, and the price and market setting for self-protection. Although some factors are observable, their impact is difficult to assess because they interact with unobservable population characteristics. (JEL I18)