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0 pointsddulaney3y ago0 comments

The VSL used in this case is $11.8 million in 2021, the most recent year it’s been adjusted for [0]. $10m is the usual rule-of-thumb. When making policies, governments generally pick a single value. Those “micro” VSL choices are one way governments can arrive at that value [1], but it’s certainly not the only way — economists have developed a bunch of different models which have (in some cases) wildly divergent outcomes [2].

But the key takeaway is that, for government policy purposes in the US, all lives are treated as having the same value and that value is about $10 million.

[0]: https://www.transportation.gov/office-policy/transportation-...

[1]: How this VSL was calculated: https://www.faa.gov/regulations_policies/policy_guidance/ben...

[2]: General VSL calculation methods: https://law.vanderbilt.edu/phd/faculty/w-kip-viscusi/368_Val...

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IncRnd3y ago

The VSL is for the Valuation of a Statistical Life, which is shown at the first link you posted. That's entirely different from saying that all lives are treated as having the same value.

If you follow your link to the actual VSL guidance, you will see that. [1] There is even discussion regarding how advances in data science can be used for subgroup evaluation of VSLs.

[1] https://www.transportation.gov/sites/dot.gov/files/2021-03/D...

ddulaneyOP3y ago

I think we’re on the same page here. You are discussing that individual lives are valued at various numbers. I’m pointing out that when deciding whether to implement safety mitigations, the government will in practice use a single value. From the link you posted:

“Prevention of an expected fatality is assigned a single, nationwide value in each year, regardless of the age, income, or other distinct characteristics of the affected population, the mode of travel, or the nature of the risk.”

I think reasonable people can disagree on whether it ever makes sense to use multiple different VSLs for different types of person. I happen to think that those kind of adjustments do more harm than good. But it’s all (literally) academic — actual policy is set based on a single VSL.

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