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Cost‐Benefit Analysis of All‐Terrain Vehicles at the CPSC 1
Author(s) -
Rodgers Gregory B.,
Rubin Paul H.
Publication year - 1989
Publication title -
risk analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.972
H-Index - 130
eISSN - 1539-6924
pISSN - 0272-4332
DOI - 10.1111/j.1539-6924.1989.tb01220.x
Subject(s) - cost analysis , statistics , econometrics , cost–benefit analysis , transport engineering , computer science , operations research , engineering , mathematics , ecology , biology
The present value of the costs of injuries and deaths associated with each unit of a product is a useful number in conducting cost‐benefit analysis at the CPSC. Before a remedy is known, this value indicates the approximate amount that it is worth spending on a fix; similarly, if a fix is proposed, this number indicates whether it is cost‐justified. The method of analysis is applied to all‐terrain vehicles. Injury costs per vehicle are estimated. Determinants of accidents are estimated using a logit regression model applied to surveys of users and of accident victims; this indicates factors associated with accidents, and is used to estimate marginal probabilities. Costs of various vehicle components are estimated using a hedonic price index. This information (injury costs, accident probabilities, and component cost) is combined in a benefit–cost analysis of proposed remedies.