Consistency in the Valuation of Life: a Wild Goose Chase?

Abstract

As Sir Thomas Browne solemnly observed in his Religio Medici, “Heresies perish not with their authors but, like the river Arethusa, though they have lost their currents in one place, they rise up in another.” So too with the economist's valuation of life, the heresy being that–without seriously challenging the current concept of subjective valuation of changes in risk–economists have regressed to the once-persistent belief that it bears some quantitative relation, if not to expected earnings, at least to the utility of expected earnings or capital or consumption. This old-tyme recipe for estimating the value of a human life – notwithstanding the ornate convolutions and occasional intellectual effronteries to be found in the more recent versions–is much like that for calculating the value of a two-week honeymoon for a loving couple by reference to their anticipated outlays (including foregone earnings) plus perhaps an allowance for the probability of non-consummation owing to frigidity in either.