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A radical change in traffic law: effects on fatalities in the Czech Republic

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  • Josef Montag

    ()
    (Faculty of Business and Economics, Mendel University in Brno)

Abstract

This study examines short- and long-run effects of a new—stricter—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 Info

Paper 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.

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Length: 26
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:men:wpaper:39_2013

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Keywords: traffic law; traffic accidents; demerit point system; law enforcement;

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  1. Holler, Manfred J, 1993. " Fighting Pollution When Decisions Are Strategic," Public Choice, Springer, vol. 76(4), pages 347-56, August.
  2. Luciano Andreozzi, 2002. "Oscilliations in the Enforcement of Law: an Evolutionary Analysis," Homo Oeconomicus, Institute of SocioEconomics, vol. 18, pages 403-428.
  3. Friedman, Milton, 1992. "Do Old Fallacies Ever Die?," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 2129-32, December.
  4. Marcello Basili & Filippo Belloc & Simona Benedettini & Antonio Nicita, 2012. "Warning, Learning and Compliance: Evidence from Micro-data on Driving Behavior," Department of Economics University of Siena 639, Department of Economics, University of Siena.
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