Study Findings from University of Manitoba Provide New Insights into Risk Management (Value of a statistical life in road safety: A benefit-transfer function with risk-analysis guidance based on developing country data)
By a News Reporter-Staff News Editor at Insurance Weekly News -- Investigators publish new report on Risk Management. According to news originating from Winnipeg, Canada, by VerticalNews correspondents, research stated, "We model a value of statistical life (VSL) transfer function for application to road-safety engineering in developing countries through an income-disaggregated meta-analysis of scope-sensitive stated preference VSL data. The income-disaggregated meta-analysis treats developing country and high-income country data separately."
Our news journalists obtained a quote from the research from the University of Manitoba, "Previous transfer functions are based on aggregated datasets that are composed largely of data from high-income countries. Recent evidence, particularly with respect to the income elasticity of VSL, suggests that the aggregate approach is deficient because it does not account for a possible change in income elasticity across income levels. Our dataset (a minor update of the OECD database published in 2012) includes 123 scope-sensitive VSL estimates from developing countries and 185 scope-sensitive estimates from high-income countries. The transfer function for developing countries gives VSL = 1.3732E-4 x (GDP per capita) <. >2.478, with VSL and GDP per capita expressed in 2005 international dollars (an international dollar being a notional currency with the same purchasing power as the U.S. dollar). The function can be applied for low- and middle-income countries with GDPs per capita above $1268 (with a data gap for very low-income countries), whereas it is not useful above a GDP per capita of about $20,000. The corresponding function built using high-income country data is VSL = 8.2474E+3 x (GDP per capita) <. >.6932; it is valid for high-income countries but over-estimates VSL for low- and middle-income countries. The research finds two principal significant differences between the transfer functions modeled using developing-country and high-income-country data, supporting the disaggregated approach. The first of these differences relates to between-country VSL income elasticity, which is 2.478 for the developing country function and .693 for the high-income function; the difference is significant at p
According to the news editors, the research concluded: "The quantified uncertainty characteristics support evidence-based approaches to sensitivity analysis and probabilistic risk analysis of economic performance measures for road-safety investments."
For more information on this research see: Value of a statistical life in road safety: A benefit-transfer function with risk-analysis guidance based on developing country data. Accident Analysis and Prevention, 2014;71():236-247. Accident Analysis and Prevention can be contacted at: Pergamon-Elsevier Science Ltd, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, England. (Elsevier - www.elsevier.com; Accident Analysis and Prevention - www.elsevier.com/wps/product/cws_home/336)
The news correspondents report that additional information may be obtained from C. Milligan, University of Manitoba, Winnipeg, MB R3T 2N2, Canada. Additional authors for this research include A. Kopp, S. Dandah and J. Montufar.
Keywords for this news article include: Winnipeg, Manitoba, Canada, North and Central America, Risk Management
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