What is your life worth, in dollars?

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.

Source: “The value of life in legal contexts: survey and critique” from American Law and Economics Review (2000) 2 (1): 195-210.

Join 45K+ readers. Get a free weekly update via email here.

Related posts:

What 10 things should you do every day to improve your life?

Which professions have the most psychopaths? The fewest?

What is the single most important life lesson older people feel young people need to know?


Tags:
Posted In:
Post Details