The cost of life expectancy and the implicit social valuation of life

A new method of estimating the economic value of life is proposed. Using cr oss-country data, an equation is estimated to explain life expectancy as a function of real consumption of goods and services. The associated cost fun ction for life expectancy in terms of the prices of specific goods and serv ices is used to estimate the cost of a reduction in age-specific mortality rates sufficient to save the life of one person. The cost of saving a life in OECD countries is as much as 1000 times that in the poorest countries. E thical implications are discussed.