“…The effect of the reduction in wealth after paying c, holding risk constant, depends on the magnitude of c relative to wealth and on the sensitivity of VSL to wealth, generally measured by the wealth or income elasticity. Theory provides little guidance about the magnitude of the income elasticity; most empirical estimates are on the order of one, with some estimates as high as two or three (Hammitt & Robinson, 2011;Hammitt et al, 2019;Masterman & Viscusi, 2018;Viscusi & Masterman, 2017). For the United States, typical estimates of VSL are roughly $9 million and annual household income averages roughly $60,000 (Robinson & Hammitt, 2016).…”