By W. Kip Viscusi (auth.), W. Kip Viscusi (eds.)

Regulations to advertise healthiness and defense will be high priced relative to the predicted future health and defense advantages, and should even have unwanted effects on healthiness and safeguard. those unwanted effects, or charges, could be as a result of decreased deepest spending on wellbeing and fitness and protection, ethical probability, or the construction of recent dangers. This quantity considers using costs--benefit research, risk--risk research, and health--health research to figure out the mortality fee linked to regulatory charges.

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Table 7. Dollars of industry output per allocated fatality Industry Agriculture, forestry & fisheries Mining Construction Manufacturing Transportation & utilities Wholesale & retail trade Finance, insurance & real estate Services Total industry output ($ millions) Output per fatality ($ millions) 184,068 121,897 596,958 2,422,538 647,507 1,054,744 1,150,446 465 1,181 689 1,710 1,075 2,487 5,925 1,342,420 1,999 34 W. KIP VISCUSI/RICHARD 1. ZECKHAUSER Table 8a. 0008 838 901 343 Table 8b. 0009 4. Monetary valuations of injuries Knowing what expenditure generates the loss of a statistical life or an injury is instructive; such figures indicate how frequently these adverse health effects would be generated by a specific regulatory expenditure.

10 Viscusi (1983) in his popular book, Risk By Choice, presents strong empirical evidence that accidental death rates decline with rising per capita income. He attributes this to a combination of increasing income causing a rising willingness to pay to avoid risk (WTP) and the development of safer technologies induced by an increasing WTP (pp 45-53). Aaron Wildavsky (1980, 1988), a political scientist, was to our knowledge the first to draw attention to the negative effects on public health of the opportunity costs of government public health programs.

47 HEALTH-HEALTH ANALYSIS We consider a risk-averse individual whose utility when alive is a continuous concave function of consumption, U( C), (U' > 0, U" < 0). 19 The variable H reflects items like seat belts and bicycle safety helmets as well as medical care and more nutritious diets. To capture diminishing returns in spending to reduce health and safety risks, we specify that p' >0, andp"

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