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Traffic fatalities: does income inequality create an externality?

Author

Listed:
  • Nejat Anbarci
  • Monica Escaleras
  • Charles A. Register

Abstract

Responsible for 20 million severe injuries and/or deaths annually, few epidemics receive less attention than traffic accidents. Going beyond confirming an inverted U‐shaped relationship between mean income and fatalities, we show theoretically that income inequality can positively affect fatalities in two ways. Each operates through heterogeneity between road users, and while the direct effect can be expected to evaporate with rising income, the indirect effect may prove to be an externality in that the relationship remains regardless of the level of income. Our model is supported by evidence from 79 countries between 1970 and 2000. Les graves accidents de la route font plus de 20 millions de blessés graves et/ou de morts chaque année. Peu d’épidémies aussi graves reçoivent aussi peu d’attention. Tentant d’aller plus loin que de confirmer la relation en U inversé entre revenu moyen et accidents, on montre théoriquement que l’inégalité de revenus peut affecter les accidents graves d’une manière positive et ce de deux façons. Chacune des façons opère via l’hétérogénéité des utilisateurs de la route: alors qu’on peut espérer que l’effet direct va disparaître avec la croissance des revenus, l’effet indirect peut être le fait d’un effet externe qui reste en place quel que soit le niveau de revenu. Le modèle est validé par des données pour 79 pays entre 1970 et 2000.

Suggested Citation

  • Nejat Anbarci & Monica Escaleras & Charles A. Register, 2009. "Traffic fatalities: does income inequality create an externality?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(1), pages 244-266, February.
    • Handle: RePEc:wly:canjec:v:42:y:2009:i:1:p:244-266
    DOI: 10.1111/j.1540-5982.2008.01507.x
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    References listed on IDEAS

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    6. Lin, Yi-Chen, 2016. "The global distribution of the burden of road traffic injuries: Evolution and intra-distribution mobility," Journal of Transport Geography, Elsevier, vol. 56(C), pages 77-91.
    7. Abouelela, Mohamed & Durán-Rodas, David & Antoniou, Constantinos, 2024. "Do we all need shared E-scooters? An accessibility-centered spatial equity evaluation approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 181(C).
    8. Haneen Abuzaid & Raghad Almashhour & Ghassan Abu-Lebdeh, 2024. "Driving towards Sustainability: A Neural Network-Based Prediction of the Traffic-Related Effects on Road Users in the UAE," Sustainability, MDPI, vol. 16(3), pages 1-22, January.
    9. World Bank, 2024. "Urban and Interurban Road Pricing," World Bank Publications - Reports 41227, The World Bank Group.
    10. Jones, Peter & Lucas, Karen, 2012. "The social consequences of transport decision-making: clarifying concepts, synthesising knowledge and assessing implications," Journal of Transport Geography, Elsevier, vol. 21(C), pages 4-16.
    11. Støstad, Morten Nyborg & Cowell, Frank, 2024. "Inequality as an externality: Consequences for tax design," Journal of Public Economics, Elsevier, vol. 235(C).
    12. Yoshitsugu Kitazawa, 2010. "Size of economic activity and occurrence of fatal traffic accidents: a count panel data analysis on Fukuoka prefecture in Japan," Discussion Papers 41, Kyushu Sangyo University, Faculty of Economics.
    13. Law, Teik Hua & Yang, Kun & Zhu, Tong & Jakarni, Fauzan Mohd, 2026. "Child road safety in Transition: How economic growth shapes fatality risks for pedestrians, cyclists, and Motorists," Social Science & Medicine, Elsevier, vol. 388(C).
    14. Law, Teik Hua & Noland, Robert B. & Evans, Andrew W., 2011. "The sources of the Kuznets relationship between road fatalities and economic growth," Journal of Transport Geography, Elsevier, vol. 19(2), pages 355-365.
    15. Yakubu, Ahmed T. & Ajide, Folorunsho M. & Abdulrahman, Idris A., . "Income Inequality and Road Transport Accidents in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 11(2).
    16. Eiji Yamamura, 2015. "The Impact of Natural Disasters on Income Inequality: Analysis using Panel Data during the Period 1970 to 2004," International Economic Journal, Taylor & Francis Journals, vol. 29(3), pages 359-374, September.
    17. Shaw, Williams & Wang, Guangmin & Ampofo, Gideon Kwaku Minua & Befeke, Chenyi Larry & Botei, Diana, 2025. "An analysis of the symmetric and asymmetric relationship between road traffic casualties and economic development of Ghana," Journal of Transport Geography, Elsevier, vol. 124(C).
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    19. Yamamura, Eiji, 2013. "Impact of natural disasters on income inequality: Analysis using panel data during the period 1965 to 2004," MPRA Paper 45623, University Library of Munich, Germany.

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    JEL classification:

    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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