The value of life in legal contexts: survey and critique

Author: V. Kip Viscusi

Source: American Law and Economics Review, Volume 2, Number 1, 1 January 2000 , pp. 195-210(16)

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Abstract:

Value of life issues traditionally pertain to insurance of the losses of accident victims, for which replacement of the economic loss is often an appropriate concept. Deterrence measures of the value of life focus on risk-money tradeoffs involving small changes in risk. Using market data for risky jobs and product risk contexts often yields substantial estimates of the value of life in the range of $3 million to $9 million. These estimates are useful in providing guidance for regulatory policy and assessments of liability. However, use of these values to determine compensation, known as hedonic damages, leads to excessive insurance.

Document Type: Original article

Affiliations: 1: Hauser 302, Harvard Law School, Cambridge, MA 02138, USA Fax: (617) 495 3010

Publication date: 2000-01-01

More about this publication?

The rise of the field of law and economics has been extremely rapid over the last 25 years. Among important developments of the 1990s has been the founding of the American Law and Economics Association. The creation and rapid expansion of the ALEA and the creation of parallel associations in Europe, Latin America, and Canada attest to the growing acceptance of the economic perspective on law by judges, practitioners, and policy-makers.