VALUATION OF ACCIDENTS HAS NORMALLY BEEN DONE BY TRACING THE DETAILS OF IDENTIFIABLE COSTS OCCURRING AS A RESULT OF AN ACCIDENT, AND THEREBY OBTAINING A (MINIMUM) COST VALUE. THE METHODS AND VALUES USED IN AUSTRALIA FROM 1969 ARE REVIEWED AND THE DISTRIBUTIONS OF COSTS OVER LOST OUTPUT, MEDICAL AND PROPERTY DAMAGE HEADINGS EXAMINED FOR SEVERAL OTHER COUNTRIES BESIDES. THE (MINIMUM) COSTS SO OBTAINED ARE OF THE SAME ORDER OF MAGNITUDE AS CONSTRUCTION AND MAINTENANCE COSTS OVER THE SAME ROADS. BOTH ARE FAR SMALLER THAN VEHICLE OPERATING AND USER TRAVEL TIME COSTS. A CHANGE FROM 'NET LOSS OF PRODUCTION' TO 'GROSS CONSUMPTION FOREGONE' IS ADVOCATED. EXAMINATION OF DISTRIBUTIONAL FACTORS EMPHASISES THAT THERE IS A CLEAR LINK BETWEEN THE VALUATION OF LOST CONSUMPTION AND OF TRAVEL TIME, WITH SPECIAL REFERENCE TO THOSE NOT AT PRESENT IN EMPLOYMENT. THE APPLICATION OF EX- POST COSTS SUCH AS THOSE IN PRESENT USE TOWARDS EVALUATING FUTURE LOSSES, IS QUESTIONED. IN ORDER TO REDUCE THE DISTORTIONS INTRODUCED BY THIS AND OTHER ASPECTS OF EX-POST METHODOLOGIES, A WILLINGNESS TO PAY (EX-ANTE) APPROACH IS ADVOCATED FOR AN EARLY TRIAL (A). THE NUMBER OF THE COVERING ABSTRACT OF THE CONFERENCE IS IRRD NO 255423.
Abstract