Assessing the Use of Pseudo-panels to Estimate the Value of Statistical Life in Developing Countries 20-20

In this paper, we estimate the Value of Statistical Life (VSL) for Chile, Colombia, and the United States using a hedonic wage model and a pseudo-panel approach. The VSL is a major component of costbenefit analysis of many policies including public health, transportation safety, and environmental regulation. Using pseudo-panels, also known as synthetic cohort data, to estimate the VSL is relevant for
low- and middle-income countries, because many do not have panel data but do have repeated crosssectional information. We conclude that the pseudo-panel approach is a suitable alternative to estimate the VSL when panel data is not available.