期刊名称：Discussion Paper Series / Department of Economics, Monash University
出版年度：2008
卷号：1
出版社：Monash University
摘要：In this short paper, we investigate the behavior of the age-dependent value of a statistical
life (VSL) within a lifecycle framework with a finite maximal possible lifespan. Some
existing results, obtained under the unrealistic assumption of an infinite life expectancy,
are reversed. In particular, we show that when the market interest rate is equal to (or less
than) the sum of age-specific mortality rate and the discounting rate in time preference at
any age over the remaining lifetime, then VSL declines. We also show that an inverted-U
shape of VSL profile over the life cycle emerges under realistically plausible
circumstances. An innovation is that we characterize the changes in optimal consumption
and instantaneous utility with age, showing that such changes are proportionate to the
difference between the sum of age-specific mortality rate and the discounting rate in time
preference and the market interest rate, which may prove to be useful in addressing other
issues related to VSL.
关键词：Value of life; life expectancy; interest rates; time preference; mortality.
