The Accounting or Human Capital Approach to Life Valuation

Abstract

In this chapter and chapter 6 various methods for valuing life are considered. These tend to be methods which have been used, are being used or have been proposed at different times, with at least some realisation that they fall short of the ideal. In considering these methods from a conceptual and theoretical standpoint it is important not to lose sight of the need to obtain actual values, that is, put the methods into practice. Consequently we need to be wary of dismissing methods too readily which, although perhaps not ideal in theory, may at least be capable of improving upon the allocation of resources in life-saving activities and at the same time capable of yielding actual values. In this and the next chapter various studies are quoted to indicate how the approaches have been or could be applied. These are not intended to be comprehensive but are used merely as examples.