General rule on the costs of regualtion: Every $15 mil. decline in wealth
leads to loss of 1statistical life.
See Lutter, Morall, and Viscusi
Economic Inquiry, Volume 37, Issue 4, pp. 599-608
From Abstract:
Using new empirical estimates for the income elasticity of many of the most
consequential risk-related behaviors, our results imply that a $15 million
decrease in income is associated with the loss of an additional statistical
life. Regulations that cost more than $15 million per expected life saved
will have counterproductive effects on individual mortality.
JC
PS- Good to see you around DeBacker.
_
John-Charles Bradbury, Ph.D.
Department of Economics
The University of the South
735 University Ave.
Sewanee, TN 37383 -1000
Phone: (931) 598-1721
Fax: (931) 598-1145
E-mail: [EMAIL PROTECTED]
- Original Message -
From: Jason DeBacker [EMAIL PROTECTED]
To: [EMAIL PROTECTED]
Sent: Wednesday, November 28, 2001 2:51 PM
Subject: Re: odds and terrorism
One could also argue that the current bills being considered for airport
security are killing people. More bags scanned, more security workers,
and
higher salaries for them will result in higher ticket prices. This raises
the cost of flying and thus more people drive on their vacations- a much
riskier form of travel...
Jason DeBacker
- Original Message -
From: Alex Tabarrok [EMAIL PROTECTED]
To: [EMAIL PROTECTED]
Sent: Wednesday, November 28, 2001 9:40 AM
Subject: odds and terrorism
Here is a nice article on the odds of various events and terrorist
related odds. It's familiar material to this audience but might make a
good discussion item in a class.
Best
Alex
http://www.washingtonpost.com/wp-dyn/articles/A7812-2001Nov23.html
--
Dr. Alexander Tabarrok
Vice President and Director of Research
The Independent Institute
100 Swan Way
Oakland, CA, 94621-1428
Tel. 510-632-1366, FAX: 510-568-6040
Email: [EMAIL PROTECTED]
