Significance and Calculation of Road Traffic Accident Costs According to the Human Capital Method in FB&H
Cost analysis of road traffic accidents in the Federation of Bosnia and Herzegovina showed that the costs of fatalities in traffic are substantial. The social and economic losses resulting from traffic accidents in the Federation were calculated using the gross output method or methods of human capital - a recognized methodology that is used in many countries. These are the estimated costs of administration; medical expenses, property damage and lost output/productivity of the killed or injured, and they include compensations for pain, grief and suffering. Given the current gross domestic product (GDP) in the Federation of Bosnia and Herzegovina (FB&H) (KM 14,161,972,692.00 in 2010), the total costs of road traffic accidents in the FB&H (823.80 million KM (421.00 million EUR)) represent an average of 5.8% to GDP in 2010.