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Valuing COVID-19 Mortality Risk

2020

In this article, the author evaluates whether conventional estimates of the value per statistical life (VSL) in the United States (about $10 million) are appropriate for evaluating policies that affect risk of COVID-19. This estimate may be too large, because: (1) VSL estimates marginal values but COVID-19 risks can be non-marginal; (2) VSL is estimated for the average resident, but COVID-19 mortality is concentrated among the elderly; and (3) the pandemic has caused substantial losses in income that should decrease VSL. In contrast, VSL is plausibly larger for risks (like COVID-19) that are dreaded, uncertain, catastrophic, and ambiguous. 

 

Source:

Hammitt JK. Valuing Mortality Risk in the Time of COVID-19. Journal of Risk and Uncertainty 2020; 61: 129-154. https://doi.org/10.1007/s11166-020-09338-1