User Account

All Pages

What is the value of a statistical life

Assignment Help Macroeconomics
Reference no: EM132471583

Problem: Many government environmental programs are designed to keep people safe or reduce illness. An estimate of the social value of human life is needed in order to allocate resources efficiently.

a) Suppose that a hedonic wage study of Canada indicates a willingness to pay of $50 per person to reduce the risk of a premature death from a toxic substance by 1 in 100,000. If the exposed population is four million people, what is the value of a statistical life?

b)  Suppose a regulation to reduce the average concentration of that toxic substance is expected to reduce mortality risk from 6 in 100,000 to 2 in 100,000. The same four million people are exposed to the substance.

i) How many lives is the regulation expected to save?

ii) What is the most the regulation could cost and still have benefits at least as large as the costs?

c) Using the value of a statistical life in part a, and assuming that per capital income in Canada is $50,000 and that a 1% change in income changes the value of a statistical life by 1%, what would the benefit transfer value of a statistical life be in a foreign country in which per capital income is $2,000?

Reference no: EM132471583

Questions Cloud

Determine case tillman rollins and office managing partner : Determine what measures could Rollins, White Eagle, and Martin have taken to enhance Smith's chances of being successful. Determine case Tillman
Specific example of the special-interest effect : Consider a specific example of the special-interest effect and the collective-action problem. In 2012, it was estimated that the total value of all corn product
How to calculate clean surplus adjustments : Determine the How to calculate Clean Surplus adjustments and Tax Shelter in the reformatted financial statement and determine step by step
What is the revised net operating income : What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 24%?
What is the value of a statistical life : If the exposed population is four million people, what is the value of a statistical life?
Supervisory layer of the federal bureaucracy : How many supervisors will there be in each supervisory layer of the federal bureaucracy?
Find an alternative source of power : Although DEC promises to help find an alternative source of power, New Yorkers aren't willing to risk blackouts and brownouts to save a few fish.
Breaches of discrimination legislation : Explain the impact of these factors on individual workers and explain the likely consequences of:
Determine how to minimize the total cost : Determine how to minimize the total cost (production + inventory cost) while meeting demands, and staying within the requirements of available material

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd