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The Value of the Risk to Life in the Context of Crime

Published online by Cambridge University Press:  02 September 2019

Emilio Picasso  and
Mariana Conte Grand
Emilio Picasso*
Affiliation:
Universidad Católica Argentina, Av Moreau de Justo 1600, (1107), Buenos Aires, Argentina, e-mail: [email protected]
Mariana Conte Grand
Affiliation:
Universidad del CEMA, Universidad del CEMA, Av Cordoba 374, (1054), Buenos Aires, Argentina
*
*e-mail: [email protected]
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Abstract

The value of the risk to life is a key element for benefit-cost analysis, enabling more rational public policy decisions in diverse areas as environmental, health, and crime. We value the risk to life in the context of crime using a discrete choice experiment (CE). The method has clear advantages in that it applies to the whole population and does not require vast data from labor markets, for example. Such data are not always available even in developed economies. Combining the stated preference approach with contingent valuation (CV), CE offer advantages yet to be explored in the context of crime. We demonstrate the application in a developing economy, where similar valuations are not available. The best estimate obtained for Argentina is an average of 1.5 million in 2015 US dollars per statistical life with a confidence interval ($1.1–$2.3). This result is consistent with estimates for the developed world, after appropriate transfer. We also analyze demographic factors in the risk to life, finding a positive influence of income, risk aversion, previous victimization experience and family size on the value of a statistical life, as well as a negative impact of individualism.

Keywords

choice experimentcrime valuationdiscrete choice modelrisk to lifevalue of statistical life.J17K14Q51.
Type
Article
Information
Journal of Benefit-Cost Analysis , Volume 10 , Issue 2 , Summer 2019 , pp. 178 - 205
Copyright
© Society for Benefit-Cost Analysis, 2019 

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