Citation

Traynor TL. East. Econ. J. 1994; 20(1): 45-60.

Copyright

(Copyright © 1994, Eastern Economic Association, Publisher Holtzbrinck Springer Nature Publishing Group -- Palgrave-Macmillan)

DOI

unavailable

PMID

unavailable

Abstract

In this article, the analysis of of offsetting behavior is extended to evaluate the external costs of these behavioral responses. The author develops and tests the hypothesis that drivers respond to safer driving conditions by choosing types of behavior that carry the lowest risk for themselves (without regard for the external costs of their behavior). Thus, the external share of accident costs should rise, on average, as driving conditions improve. Several econometric models are estimated which lend support to this hypothesis and indicate that its effects are stronger as the change to safety conditions becomes more significant.