I’ve enjoyed Bryan Caplan’s recent two posts (here and here) about how the value of life varies with age and I’m inclined to agree with him.
I think about my own situation. My mother died of cancer in December 1969 at age 53. My brother committed suicide in July 1970 at age 22, just shy of 23. My father died in June 1997 at age 87. And my sister died in November 2018 at age 72. When I think about my degree of sadness and loss, it corresponds with what Bryan says. I’m most upset (still) by the loss of my brother, then my mother, then my sister, and then my father. Of course, one potentially confounding factor is that I didn’t like them all equally. My father was the toughest, but we had a strong finish, starting in the early 1980s.
Here’s a problem, though. This is my valuation of my siblings and parents. It says nothing about their own valuations of their lives. Clearly, my brother valued his life at zero in the moment he took his own life. Although, as I’ve learned from reading about suicide since, if I had been able to foresee his action and talk him out of it, he might have felt different even in a few days. A good rule for people who are thinking of suicide is similar to one that Mark Twain was purported to have said about the weather in New England: “If you don’t like the weather in New England now, just wait a few minutes.” Re suicide, “If you want to commit suicide, put it off until tomorrow.”
Back to my point. I remember when Walter Oi came to UCLA when I was a graduate student and presented at Harold Demsetz‘s law and economics workshop in about 1974 or 1975. My memory is a little vague here, but he presented what he found to be a quandary. His data showed that if, while driving, you hit someone and injured him badly, you or your insurance company would be required to pay $X. But if you killed him, you would be required to pay $Y, where Y is less than X. The moral of the story, he said jokingly, is if you hit him and he appears to be moving, make sure you back up and run him over.
Armen Alchian gave him another way of looking at it. In the case where you kill him, he’s not around to deal with the consequences. But if you injure him badly, he is around and wants to be compensated. The idea, said Armen, is that the rates are set on the basis of the victim’s preferences: in one case he’s not around to have preferences. They are not set on the basis of the victim’s family’s preferences, who, if they love him, would want to be compensated more for his death.
(In the comments, you might want to present alternate evidence on X versus Y. Be gentle because my memory is imperfect. Walter Oi might have been talking about workmen’s compensation or something like that.)
The picture above is of Walter Oi.
READER COMMENTS
AMW
Apr 20 2021 at 7:20pm
I believe that in China there have actually been cases of motorists backing up and running over people they have injured to finish them off. IIRC, the reason was that compensation to a decedent’s family were fixed by the state, and relatively low, while payments to an injured party were determined in court and could be very high.
alvinccente
Apr 20 2021 at 7:42pm
My torts professor in law school said “Aim to kill, not to maim.” Juries tend to be swayed more by a pathetic, limping, bandaged plaintiff than by an empty chair.
David Seltzer
Apr 20 2021 at 11:22pm
If I am a consequentialist, it seems actuaries and insurance companies have made that calculation. After all The die-away curve is exponential, capturing one’s accelerating decline.
Andrew_FL
Apr 21 2021 at 12:02pm
David Henderson once again proving he is the most consistent subjectivist on Econlog. Well posted.
We see a great deal of confusion about how private individuals personally value their own life in debates over healthcare, too. Elderly individuals spending inordinate amounts of their own income & savings to extend their own lives very slightly are deemed to be engaging in “wasteful” consumption, because society broadly sees little value in their remaining life. Nonsense. Society’s valuation is irrelevant to the consumption decisions of individuals.
Frank
Apr 21 2021 at 4:41pm
Maybe they just don’t like their kids.
alvincente
Apr 21 2021 at 4:49pm
Let me expand on my point above (with a better spelling of my moniker): Insurance payments for injuries are higher than for death because court judgments that insurance companies have to pay for injuries are higher than for deaths. This is so both because injured plaintiffs are more sympathetic (per my previous comment) and also because “wrongful death” statutes in every state limit the recovery allowable for a death to less than that available for injuries. For injuries there are not only so-called “pecuniary” damages (e.g. loss of income) but also pain and suffering, loss of enjoyment of life, and similar “general damages” which a plaintiff may be entitled to. By contrast, the wrongful death statutes usually limit recovery to the pecuniary damage to survivors, which is typically lost earnings minus what would have been the living costs of the deceased.
Jens
Apr 23 2021 at 3:45am
Good post. However, it should be noted that the ratio of Y to X is tied to a specific jurisdiction and legislature. And that criminal consequences could probably also be framed as “costs”. So the presumed preference of the injured not to be killed is somehow still there. It may seem appropriate to omit that here in the interest of the example and ceteris paribus. But I’m not sure if that’s really appropriate, because you have to factor in all the consequences.
Peter Gerdes
May 11 2021 at 6:53pm
So something which actually helped me while struggling with serious depression was the commitment that it would be totally foolish to commit suicide before taking out a bunch of credit cards/loans and then blowing all the money on drugs and bookers.
While I did spend too much more on intoxicants while younger (depression related but not suicide related.. except for once or twice) by the time one has managed even the most half-assed preliminaries for going out in a blaze of debauchery moods have changed. I wish this suggestion would be passed on to more people but I think most authority figures are reluctant to make even the conditional case for a massive narcotics party even if it’s absurd to respect those inhibitions if you are serious about the suicide.
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