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A Reexamination of Resource Allocation Responses to the 65-MPH Speed Limit

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  • Michael Greenstone

    ()
    (and Assistant Professor, Department of Economics, University of Chicago, 1126 E. 59th St., Chicago, IL 60637.)

Abstract

In a recent issue of Economic Inquiry (35[3]: 614--20) Lave and Elias (1997) contend that the 1987 increase in speed limits to 65 mph on rural interstate roads caused a reduction in statewide fatality rates. They argue that increased fatality rates on rural interstates were counterbalanced by declines on other roads due to compensatory reallocations of drivers and state police. This article is unable to find any empirical evidence of these reallocations. This removes the empirical basis for their hypothesis and implies that the effect of the 65-mph speed limit can be inferred from an analysis of rural interstates only. On these roads, fatality rates increased dramatically. Copyright 2002, Oxford University Press.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 40 (2002)
Issue (Month): 2 (April)
Pages: 271-278

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Handle: RePEc:oup:ecinqu:v:40:y:2002:i:2:p:271-278

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Cited by:
  1. Michael A. Morrisey & David C. Grabowski, 2005. "State motor vehicle laws and older drivers," Health Economics, John Wiley & Sons, Ltd., vol. 14(4), pages 407-419.
  2. Anderson, D. Mark & Rees, Daniel I., 2012. "Per Se Drugged Driving Laws and Traffic Fatalities," IZA Discussion Papers 7048, Institute for the Study of Labor (IZA).
  3. Johansson-Stenman, Olof & Martinsson, Peter, 2003. "Anyone for Higher Speed Limits? - Self-Interested and Adaptive Political Preferences," Working Papers in Economics 95, University of Gothenburg, Department of Economics.
  4. Dee, Thomas S. & Grabowski, David C. & Morrisey, Michael A., 2005. "Graduated driver licensing and teen traffic fatalities," Journal of Health Economics, Elsevier, vol. 24(3), pages 571-589, May.
  5. Dee, Thomas S. & Sela, Rebecca J., 2003. "The fatality effects of highway speed limits by gender and age," Economics Letters, Elsevier, vol. 79(3), pages 401-408, June.
  6. Yang, Hai & Wang, Xiaolei & Yin, Yafeng, 2012. "The impact of speed limits on traffic equilibrium and system performance in networks," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1295-1307.
  7. Anderson, D. Mark & Rees, Daniel I., 2011. "Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption," IZA Discussion Papers 6112, Institute for the Study of Labor (IZA).

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