Precautionary Behavior and Willingness to Pay for a Mortality Risk Reduction:Searching for the Expected Relationship

No 2007:3, Working Papers from Örebro University, School of Business

Abstract: This paper examines within-sample correlation between six different precautionary behaviors and willingness to pay for a mortality risk reduction. The paper also shows estimates of the value of a statistical life based on seat belt and bicycle helmet usage as well as based on the stated willingness to pay for a risk reduction in traffic mortality. Contrary to the theoretical expectations, no correlation is found between precautionary behavior and willingness to pay, which is problematic for the validity of contingent valuation answers. One major explanation is that females and the elderly take more precaution, but states a lower WTP for a risk reduction. The estimates of VSL from the different approaches are $11.0, $6.4 and $5.5 million from stated WTP, seat belt use and bicycle helmet use, respectively.

Keywords: Value of a Statistical Life; Revealed Preference; Stated Preference; Risk Behavior (search for similar items in EconPapers)
JEL-codes: D60 D80 I10 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2007-06-26, Revised 2008-09-09
New Economics Papers: this item is included in nep-hea and nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of Risk & Uncertainty, 2009, pages 65-85.

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Precautionary behavior and willingness to pay for a mortality risk reduction: Searching for the expected relationship (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:oruesi:2007_003

Access Statistics for this paper

More papers in Working Papers from Örebro University, School of Business Örebro University School of Business, SE - 701 82 ÖREBRO, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by ().