There are some interesting thoughts here, thanks for sharing. I suspect that revealed ratios will vary substantially by context, mostly because decisions also affect many other things, but partly because of a lack of consistency.
One point that is worth stressing is that the ratio for lives is likely to be different (perhaps quite different) from the ratio for dollars—precisely because the cost of saving lives varies significantly by country.
Thanks, Owen. As I mention below to Ben, I agree that, historically, there has been no consistent ratio. Were the government to act rationally/consistently, however, I think there would be a consistent baseline ratio, and other (e.g., instrumental) considerations could then be added to that ratio to arrive at the proper policy position.
I’m also not sure I understand the point re the difference between the ratio for lives and dollars. Assume I value American lives ten times more than African lives, i.e., my America:Africa ratio is 10:1. Under those circumstances, I’d be willing to spend ten times as much to save an American life. If it costs nine times as much to save an American life as an African life, I’d give to an America-oriented charity, but if it costs eleven times as much, I’d shift to an Africa-oriented charity.
Now suppose there are nine Africans on one railroad track and one American on another; the train has to take one of the two tracks, and which one is up to me. . . . (you know where this is going.) Let me know if I’m misunderstanding your point, but I think the ratio should be same no matter whether we’re talking life exchanges or dollars for aid.
My point is that there is a trade-off ratio you’d use for dollars (as in your first example, between you and your sister), and another ratio you’d use for lives, and that these will come apart.
Suppose that it costs $10,000 dollars to save a life at the margin in Country A, and $100,000 in Country B. If you valued (lives in Country A):(lives in Country B) at 1:20, then you should value (dollars in healthcare in Country A):(dollars in healthcare in Country B) at 1:2.
There are some interesting thoughts here, thanks for sharing. I suspect that revealed ratios will vary substantially by context, mostly because decisions also affect many other things, but partly because of a lack of consistency.
One point that is worth stressing is that the ratio for lives is likely to be different (perhaps quite different) from the ratio for dollars—precisely because the cost of saving lives varies significantly by country.
Thanks, Owen. As I mention below to Ben, I agree that, historically, there has been no consistent ratio. Were the government to act rationally/consistently, however, I think there would be a consistent baseline ratio, and other (e.g., instrumental) considerations could then be added to that ratio to arrive at the proper policy position.
I’m also not sure I understand the point re the difference between the ratio for lives and dollars. Assume I value American lives ten times more than African lives, i.e., my America:Africa ratio is 10:1. Under those circumstances, I’d be willing to spend ten times as much to save an American life. If it costs nine times as much to save an American life as an African life, I’d give to an America-oriented charity, but if it costs eleven times as much, I’d shift to an Africa-oriented charity.
Now suppose there are nine Africans on one railroad track and one American on another; the train has to take one of the two tracks, and which one is up to me. . . . (you know where this is going.) Let me know if I’m misunderstanding your point, but I think the ratio should be same no matter whether we’re talking life exchanges or dollars for aid.
My point is that there is a trade-off ratio you’d use for dollars (as in your first example, between you and your sister), and another ratio you’d use for lives, and that these will come apart.
Suppose that it costs $10,000 dollars to save a life at the margin in Country A, and $100,000 in Country B. If you valued (lives in Country A):(lives in Country B) at 1:20, then you should value (dollars in healthcare in Country A):(dollars in healthcare in Country B) at 1:2.