Assessing the incorporation of latent variables in the estimation of the value of a statistical life

Barrientos, Manuel; Lavin, Felipe Vasquez; Oliva, Roberto D. Ponce

Abstract

For many years, the economic literature has recognized the role of attitudes, beliefs, and perceptions in estimating the value of a statistical life (VSL). However, few applications have attempted to include them. This article incorporates the perceived controllability and concern about traffic and cardiorespiratory risks to estimate VSL using a hybrid choice model (HCM). The HCM allows us to include unobserved heterogeneity and improve behavioral realism explicitly. Using data from a choice experiment conducted in Santiago, Chile, we estimate a VSL of US$3.78 million for traffic risks and US$2.06 million for cardiorespiratory risks. We found that higher controllability decreases the likelihood that the respondents would be willing to pay for risk reductions in both risks. On the other hand, concern about these risks decreases the willingness to pay for traffic risk reductions but increases it for cardiorespiratory risk reductions.

Más información

Título según WOS: ID WOS:001169715000001 Not found in local WOS DB
Título de la Revista: RISK ANALYSIS
Editorial: Wiley
Fecha de publicación: 2024
DOI:

10.1111/risa.14286

Notas: ISI