Modernizing the “Value of a Statistical Life”
Regulators should adopt alternative approaches to valuing avoided mortality in regulatory analysis.
The Irrationality of Market Failure Theory
The economic principles underlying cost-benefit analysis exclude future impacts.
The Value of a Statistical Life is Not Efficient
Over-reliance on the VSL measure often leads to excessive consideration and regulation of risk.
Putting the Horse Before the Cart in Cost-Benefit Analysis
Regulators must measure welfare using transparent methods before determining the policies themselves.
The Myopic Short-Termism of the Value of a Statistical Life
The primary drawback of the VSL is that it fails to account for future generations’ valuation of benefits and costs.
Rethinking the Value of a Statistical Life
It is time to reconsider the value of the VSL in policy analysis.
Make Benefit-Cost Analysis Meaningful
Regulatory benefit-cost analysis should account for people’s welfare, not just empirical data.
How Much of an Income Drop Will Take a Life?
Policymakers should consider the impact of their decisions on not just wealth, but also human life.