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Drinking Age Laws and Highway Mortality Rates: Cause and Effect

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  • Saffer, Henry
  • Grossman, Michael

Abstract

This paper presents estimates of the effects of the drinking age and beer taxes on youth motor vehicle mortality. A simultaneous equation model is used and the resu lts show that the drinking age is a function of mortality rates. The results also show that for eighteen to twenty year-old drivers, an in crease in the drinking age to twenty-one, which is approximately 8 pe rcent, would reduce mortality by approximately 18 percent. Also a 100 percent increase in the real beer tax, which is approximately $1.50 per case, would reduce highway mortality by about 27 percent. Copyright 1987 by Oxford University Press.

Suggested Citation

  • Saffer, Henry & Grossman, Michael, 1987. "Drinking Age Laws and Highway Mortality Rates: Cause and Effect," Economic Inquiry, Western Economic Association International, vol. 25(3), pages 403-417, July.
    • Handle: RePEc:oup:ecinqu:v:25:y:1987:i:3:p:403-17
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