Kevin L Brady (Utah State University) has posted Mortality Risk Reduction Theory and the Implied Value of Life on SSRN. Here is the abstract:
The goal of this article is to explore the micro-economic theory surrounding the demand for mortality risk reduction and to demonstrate the theoretical inadequacy of some currently used estimation methods. Section 2 develops the idea that risk reduction is both a public and a private good and mentions some currently used willingness to pay (WTP) and willingness to accept (WTA) estimation techniques. Section 3 develops the model of demand for mortality risk reduction and presents empirical evidence. Section 4 provides an overview and critique of the use of WTP and WTA estimates for the valuation of life. While estimates of WTP for risk reductions cannot be used to value life, they do provide a basis for evaluating the benefits of preventing statistical deaths. However, VSL estimates should only be used in the analysis of government programs that involve minute changes in remote probabilities of death.