A radical change in traffic law: effects on fatalities in the Czech Republic
AbstractThis study examines short- and long-run effects of a newâ€”stricterâ€”road traffic law on traf- fic accident-related fatalities in the Czech Republic. The law introduced tougher punishments through the introduction of a demerit point system and a manifold increase in fines, together with augmented authority of traffic police. Identification is based on difference-in-differences methodology, with neighbouring countries serving as a control group. I find a sharp, 33.3%, decrease in accident-related fatalities during the first three post-reform months. This trans- lates into 127 saved lives (95% confidence interval: 51, 204). The decline was, however, temporary; the estimates of the effects going beyond the first year are around zero. Unique data on traffic police activity reveal that police resources devoted to traffic law enforcement gradually declined. Tougher penalties have significant, but often short-lived effects. Weaker enforcement in the aftermath of such reforms may explain the absence of long-run effects.
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Bibliographic InfoPaper provided by Mendel University in Brno, Faculty of Business and Economics in its series MENDELU Working Papers in Business and Economics with number 2013-39.
Date of creation: Sep 2013
Date of revision:
traffic law; traffic accidents; demerit point system; law enforcement;
Other versions of this item:
- Josef Montag, 2013. "A Radical Change in Traffic Law: Effects on Fatalities in the Czech Republic," CERGE-EI Working Papers wp484, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-05 (All new papers)
- NEP-LAW-2013-10-05 (Law & Economics)
- NEP-TRA-2013-10-05 (Transition Economics)
- NEP-TRE-2013-10-05 (Transport Economics)
- NEP-URE-2013-10-05 (Urban & Real Estate Economics)
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