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The Effects of Varying Safety Conditions on the External Costs of Driving

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Author Info
Thomas L. Traynor (Wright State University)
Abstract

In this article, the analysis of of offsetting behavior is extended to evaluate the external costs of these behavioral responses. The author develops and tests the hypothesis that drivers respond to safer driving conditions by choosing types of behavior that carry the lowest risk for themselves (without regard for the external costs of their behavior). Thus, the external share of accident costs should rise, on average, as driving conditions improve. Several econometric models are estimated which lend support to this hypothesis and indicate that its effects are stronger as the change to safety conditions becomes more significant.

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File URL: http://college.holycross.edu/eej/Volume20/V20N1P45_60.pdf
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Publisher Info
Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 20 (1994)
Issue (Month): 1 (Winter)
Pages: 45-60
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Handle: RePEc:eej:eeconj:v:20:y:1994:i:1:p:45-60

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Related research
Keywords: Safety

Find related papers by JEL classification:
R48 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Government Pricing; Regulatory Policies
D18 - Microeconomics - - Household Behavior - - - Consumer Protection

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This page was last updated on 2008-8-23.

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