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Traffic fatalities: does income inequality create an externality?

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Author Info

  • Nejat Anbarci
  • Monica Escaleras
  • Charles A. Register

Abstract

Responsible for 20 million severe injuries and/or deaths annually, few epidemics receive less attention than traffic accidents. Going beyond confirming an inverted U-shaped relationship between mean income and fatalities, we show theoretically that income inequality can positively affect fatalities in two ways. Each operates through heterogeneity between road users, and while the direct effect can be expected to evaporate with rising income, the indirect effect may prove to be an externality in that the relationship remains regardless of the level of income. Our model is supported by evidence from 79 countries between 1970 and 2000.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 42 (2009)
Issue (Month): 1 (February)
Pages: 244-266

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Handle: RePEc:cje:issued:v:42:y:2009:i:1:p:244-266

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Cited by:
  1. Yamamura, Eiji, 2013. "Impact of natural disasters on income inequality: Analysis using panel data during the period 1965 to 2004," MPRA Paper 45623, University Library of Munich, Germany.
  2. Yoshitsugu Kitazawa, 2010. "Size of economic activity and occurrence of fatal traffic accidents: a count panel data analysis on Fukuoka prefecture in Japan," Discussion Papers 41, Kyushu Sangyo University, Faculty of Economics.

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