Journal of Political Economy Vol. 79 No. 4 1971
Evaluation of Life and Limb: A Theoretical Approach
Abstract
None of the existing methods of evaluating loss or saving life, or assessing an increase or reduction in accidents resulting from investment projects, is satisfactory for a number of reasons. This is so chiefly because they are all inconsistent with the Pareto base of existing allocation theory and benefit-cost analysis. Strict application of the Pareto principle to changes in accidents and fatalities involves a calculation of the compensating variation associated with the changes in risk bearing regarded as external effects. Several of these external effects are discussed at length.
- DOI
- 10.1086/259784
- Volume
- 79
- Issue
- 4
- Pages
- 687-705
- Language
- en
- Sources
- openalex crossref