Calculating the economic value of non-marginal mortality risk reductions

Diego S. Cardoso, Ricardo Dahis

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Benefit–cost analyses in public health typically calculate the benefits of mortality reduction interventions by multiplying the Value of a Statistical Life (VSL) and the expected decrease in fatalities. This procedure approximates the benefits of small mortality changes but is inaccurate for large risk changes because it holds constant the VSL—a marginal rate of substitution. Building on the theoretical framework of the VSL, we derive expressions to calculate the benefits of non-marginal mortality reductions with empirically calibrated compensating variations and illustrate their use.

Original languageEnglish
Article number111673
Number of pages5
JournalEconomics Letters
Volume237
DOIs
Publication statusPublished - Apr 2024

Keywords

  • Benefit–cost analysis
  • Mortality risk
  • Value of a statistical life
  • VSL

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