Value of a Statistical Life (VSL)
The Value of a Statistical Life (VSL) in economic evaluation refers to the monetary estimate placed on the reduction of mortality risk in a given population or context. It represents the economic value individuals place on small reductions in the probability of death. This valuation is crucial in cost-benefit analyses and other economic assessments where decisions about public policies, regulations, or projects involve considerations of life-saving interventions. VSL is often used to assign a monetary value to the benefits of policies or projects that impact mortality rates, allowing policymakers to compare the costs and benefits of different interventions and make informed decisions based on economic considerations.