Measuring the Monetary Value of Lifesaving Programs

Abstract

A multitude of public investment and regulatory decisions which have some effect on mortality and morbidity rates are made by legislatures, administrative agencies, and the courts every year. A decision to require something other than the minimum technologically feasible mortality rate reflects in effect a judgment that mortality (or safety) is not to be given lexical priority in public decisions over all other commodities which money can buy - a judgment which is certainly reasonable and in accord with everyday decisions made by households. If mortality is not to be given lexical priority, some other standard or procedure is needed to determine which projects are worthwhile. In particular, a procedure is needed for measuring the benefits of such programs in units which can be readily compared with the costs.