Study On Standards Of Death Compensation Based On Life Value Theory

Valuing life has been proven to be one of the most controversial areas in economics. It is immoral to value lives. However, society, by necessity, must make resource allocation decisions that at least implicitly value life. There is no doubt that economic development has prospered the society, however, resources are so scarce and public policies are even more costly. So, tradeoffs are always between risk and money spent on public policies. To determine whether a policy is socially desirable, one needs to compare the value of reducing risks to the cost of public policies. So it is necessary to estimate the economic value of a man.In this context, several methods have been discussed to estimating implicit prices for reduced risks to life and health. They include the Human Capital (HC) approach, the Willingness-To-Pay (WTP) approach, etc. In this study, the estimation of the economic value of life in China is based on an international comparison of workers'compensation act.This paper estimates the monetary value of life, and the conclusion of the study is very close to the estimation of the World Bank. The study, it could be said, provides necessary information on the value of life and injury in China, as well as calculating the death benefits in a fatal accident.