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Effects of Tort Liability and Insurance on Heavy Drinking and Drinking and Driving

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Author Info

  • Sloan, Frank A
  • Reilly, Bridget A
  • Schenzler, Christoph

Abstract

Using self-reported data on patterns of alcohol use among individuals from the 1989-90 Behavioral Risk Factor Surveys, this study investigates effects of tort liability and third- and first-party insurance, alcohol prices, and criminal sanctions on frequency of binge drinking and driving under the influence of alcohol (DUI). Requiring drivers to purchase third-party insurance discouraged binge drinking, especially in states combining compulsory insurance with a surcharge for a DUI. Implementation of no-fault laws and switching from contributory to comparative negligence increased binge drinking, while higher alcohol prices reduced it. With one exception, neither tort nor contort deterrents affected the fraction of bingeing episodes after which the individual drove. Overall, it appears that deterrence of DUI is achieved by curbing behavior that leads to DUI, namely, binge drinking. Once individuals engage in binge drinking, it appears that many policies designed to be deterrents have little influence. Copyright 1995 by the University of Chicago.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Law & Economics.

Volume (Year): 38 (1995)
Issue (Month): 1 (April)
Pages: 49-77

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Handle: RePEc:ucp:jlawec:v:38:y:1995:i:1:p:49-77

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Web page: http://www.journals.uchicago.edu/JLE/

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Cited by:
  1. Jean-Marc Bourgeon & Pierre Picard, 2007. "Point-record driving licence and road safety : an economic approach," Post-Print hal-00243024, HAL.
  2. Frank Sloan & Lindsey Eldred & Tong Guo & Yanzhi Xu, 2013. "Are people overoptimistic about the effects of heavy drinking?," Journal of Risk and Uncertainty, Springer, vol. 47(1), pages 93-127, August.
  3. Carpenter, Christopher, 2004. "How do Zero Tolerance Drunk Driving Laws work?," Journal of Health Economics, Elsevier, vol. 23(1), pages 61-83, January.
  4. Christopher J. Ruhm, 1995. "Alcohol Policies and Highway Vehicle Fatalities," NBER Working Papers 5195, National Bureau of Economic Research, Inc.
  5. G. Dari Mattiacci & G.G.A. de Geest, 2004. "The Filtering Effect of Sharing Rules," Working Papers 04-17, Utrecht School of Economics.
  6. Michael Grossman & Sara Markowitz, 1999. "Alcohol Regulation and Violence on College Campuses," NBER Working Papers 7129, National Bureau of Economic Research, Inc.
  7. Dionne, Georges & Michaud, Pierre-Carl & Pinquet, Jean, 2013. "A review of recent theoretical and empirical analyses of asymmetric information in road safety and automobile insurance," Research in Transportation Economics, Elsevier, vol. 43(1), pages 85-97.
  8. Nelson, Jon P., 2014. "Binge Drinking, Alcohol Prices, And Alcohol Taxes," Working Papers 164652, American Association of Wine Economists.
  9. Thomas S. Dee, 2001. "Alcohol abuse and economic conditions: Evidence from repeated cross-sections of individual-level data," Health Economics, John Wiley & Sons, Ltd., vol. 10(3), pages 257-270.
  10. Christopher J. Ruhm & William E. Black, 2001. "Does Drinking Really Decrease in Bad Times?," NBER Working Papers 8511, National Bureau of Economic Research, Inc.
  11. Don Freeman, 2009. "Beer in Good Times and Bad: A U.S. State-Level Analysis of Economic Conditions and Alcohol Consumption," Working Papers 0906, Sam Houston State University, Department of Economics and International Business.
  12. Christopher Carpenter, 2004. "Heavy alcohol use and youth suicide: Evidence from tougher drunk driving laws," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(4), pages 831-842.
  13. Giacomo De Giorgi & Michele Pellizzari & William Gui Woolston, 2010. "Class Size and Class Heterogeneity," NBER Working Papers 16405, National Bureau of Economic Research, Inc.
  14. Vereeck, Lode & Vrolix, Klara, 2007. "The social willingness to comply with the law: The effect of social attitudes on traffic fatalities," International Review of Law and Economics, Elsevier, vol. 27(4), pages 385-408, December.
  15. Daniel P. Kessler & Daniel L. Rubinfeld, 2004. "Empirical Study of the Civil Justice System," NBER Working Papers 10825, National Bureau of Economic Research, Inc.
  16. Jean Pinquet & Georges Dionne & Charles Vanasse & Mathieu Maurice, 2007. "Point-record incentives, asymmetric information and dynamic data," Working Papers hal-00243056, HAL.

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