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9

It depends on the context, of course, but most often in policy analysis "the value of a life" has nothing (directly) to do with output, etc, but instead means the maximum amount that people would want the government to spend in order to save a randomly chosen life. So in a country of 300,000,000, the question is: What, to you, is the monetary equivalent ...


3

If you're willing to pay \$10 to reduce your risk of death by 1 in 1M, then your VSL is \$10M.† Example. Say there are two bike helmets. One costs \$20 while the other costs \$30. The two helmets are exactly identical, except that the more expensive one has been proven to reduce your risk of death by an additional 1 in 1M. If you're willing to buy the more ...


1

You can take a look at the approach that insurances uses to pay out life insurance: In life insurance parlance, "Human Life Value" or HLV, represents the amount that ensures a family's standard of living does not get affected if the one who earns for the family dies or is unable to continue earning. This source has several links for different methods (...


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