
W. Kip Viscusi
386
Keywords
Value of a Statistical Life, VSL, VSLY, Risk-Risk Analysis, Hedonic Model, Stated Preferences, CFOI
JEL Classification Codes
H51, I10, I18, J17, J31, K32
7.1 INTRODUCTION
The valuation of risks outside of the financial domain may pose greater challenges
than the valuation of monetary lotteries, for which it is relatively straightforward to
calculate the certainty equivalent as the pivotal valuation measure. For lotteries involv-
ing the simplest kinds of nonmonetary outcomes, the fact that the outcome does not
involve money may pose few difficulties for valuation. In many instances, one can
treat the outcome as being tantamount ...