Estimating Fatalities Induced by the Economic Costs of Regulations

Regulatory costs are paid by individuals, which leaves them with less disposable income. Since individuals on average use additional income to make their lives safer and healthier, the regulatory costs lead to higher mortality risks and fatalities. Based on data from the National Longitudinal Mortality Study relating income to the risk of dying, approximately each $5 million of regulatory cost induces a fatality if costs are borne equally among the public. If costs are borne proportional to income, approximately $11.5 million in regulatory costs induces a fatality. Cost-induced fatalities disproportionally burden the poor and minorities, particularly blacks.

Duke Scholars

Author Ralph L. Keeney Fuqua School of Business