Citation

Randall L, John FM. J. Risk Uncertain. 1994; 8(1): 43-66.

Copyright

(Copyright © 1994, Holtzbrinck Springer Nature Publishing Group)

DOI

10.1007/BF01064085

PMID

unavailable

Abstract

Regulations to promote health and safety that are exceptionally costly relative to the expected health benefits may actually worsen health and safety, since compliance reduces other spending, including private spending on health and safety. Past studies relating income and mortality give estimates of the income loss that induces one death ? a value that we call willingness-to-spend (WTS)-to be around $9 to $12 million. Such estimates help identify regulations that do not improve health and safety, and moreover, fail benefit-cost comparisons. WTS is a multiple of the willingness to pay to avert a statistical death. International data yield estimates of WTS and willingness-to-pay in different countries.