Fixed-effects hedonic price model for statistical value of live estimations

Relatively little attention has been given to the differences in value of statistical life (VSL) from developed and less developed countries. The paper derives a cross-countries VSL estimate based on road fatality accidents and it provides a test to check for such differences. Estimations were obtained from a fixed-effect hedonic price model applied to a panel of data using new and second-hand car prices from 27 countries as a dependent variable. The VSL estimate of €6.63 million is in line with results from other studies; and the income elasticity of VSL between countries is close to unity, implying that VSL is approximately proportional to income. © 2006 Taylor & Francis.