Valuing Life as an Asset, as a Statistic and at Gunpoint

A-Tier
Journal: Economic Journal
Year: 2022
Volume: 132
Issue: 643
Pages: 1095-1122

Authors (3)

Julien Hugonnier (École Polytechnique Fédérale d...) Florian Pelgrin (not in RePEc) Pascal St-Amour (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Rationalising the stark differences between the human capital and the statistical values of a human life is complicated by the absence of common foundations. We solve a human capital investment model with longevity risk to characterise the human capital. The associated indirect utility yields the willingness to pay against mortality; the marginal willingness to pay solves the value of a statistical life. Indifference between life and certain death characterises the limiting willingness to pay and provides a gunpoint value. A structural estimation reveals similar human capital (300,000) and gunpoint value (251,000) and explains a much larger statistical value (4.98 million) by a strongly concave willingness to pay.

Technical Details

RePEc Handle
repec:oup:econjl:v:132:y:2022:i:643:p:1095-1122.
Journal Field
General
Author Count
3
Added to Database
2026-02-02