Public safety under imperfect taxation

Standard benefit-cost analysis often ignores distortions caused by taxation and the heterogeneity of taxpayers. In this paper, we theoretically numerically explore effect imperfect on public provision mortality risk reductions (or safety). We show that critically depends source imperfection as well individual utility survival probability functions. Our simulations based calibration distributional weights applied to COVID-19 example suggest value per statistical life, in turn optimal level safety, should be adjusted downwards because taxation. However, also identify circumstances under which result is reversed, so cannot generically justify less safety.