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Unformatted text preview: 9/29/2009 1 TODAY class 13 Value of Life Economic Scene: Putting a price tag on life, What is your life worth? Lets get out a calculator, The value of a human life: $129,000 Deceased criminals kids to get payout Group based versus individual fairness Brander (4; 65-68) Next Class Friday Oct 9 Comm. 394-Barbara Spencer The Positive Theory of Government Brander (5, pp 81-92 Voting) Monday Oct 12 Thanksgiving holiday Estimating the Value of Life Income-based approach (earnings lost) value life by the present value of lifetime earnings + some amount for pain and suffering But value of life too low using this method 1970 NHTSA estimate (Ford Pinto case) $200,000. Moore and Viscusi study (in 1990 USD): $500,000. Death benefit paid by US govt. for soldiers killed in Comm. 394-Barbara Spencer Iraq or Afghanistan: currently $500,000 USD. 2008 Canadian study on the cost of externalities: used $4 million for a Canadian life, $260,000 for a fully disabling accident. 9/29/2009 2 Pinto case-Value of Life (1970 USD) Future Productivity losses - $173,300 Victims pain and suffering $10 000 Victim s pain and suffering $10,000 Lost consumption (assets) $ 5,000 Medical costs $1,125 Funeral $900 Property damage $1,500 Comm. 394-Barbara Spencer Other (insurance, legal etc) $8,900 TOTAL $200,725 Deceased criminal value of life?...
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This note was uploaded on 02/14/2010 for the course COMM 296 taught by Professor Dasgupta during the Fall '08 term at The University of British Columbia.
- Fall '08