Economics Dictionary of ArgumentsHome
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| Peltzman Effect: The Peltzman Effect in economics suggests that safety regulations may lead to an unintended increase in risky behavior. When individuals perceive a lower level of risk due to safety measures (e.g., seat belts), they may compensate by engaging in more hazardous actions, thus offsetting the intended safety benefits. This effect highlights the complexity of risk management. See also Safety regulations, Risks, Risk perception._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Samuel Peltzman on Peltzman Effect - Dictionary of Arguments
Henderson I 81 Safety Regulations/Peltzman effect/Peltzman/Henderson/Globerman: Peltzman's second major contribution to the understanding ofthe unintended effects of regulation was his 1975 study(1) of the effects on traffc safety of a slew of US National Highway Traffc Safety Administration regulations on the design of cars. In the mid to late 1960s, the federal government made a number of safety features mandatory. These included seat belts for all occupants, an energy-absorbing steering column, a penetration-resistant windshield, a dual braking system, and a padded instrument panel. In his Study, Peltzman stated that the goal of the mandates was to reduce traffc fatalities and serious injuries sustained as a consequence of vehicle accidents. But he found something different. Problem: Fatalities were not reduced at all. Instead, deaths of vehicle occupants fell but those of pedestrians and motorcycle drivers rose. Peltzman's tentative explanation was that by reducing the probability of being killed in a given accident, the mandates caused drivers to drive more "intensely." His finding became so well known that economists started referring to the "Peltzman effect." Later studies found that drivers with antilock brakes tended to follow the cars in front of them more closely. A 2010 Study of NASCAR accidents found that the "mandated use of a head-and-neck-restraint system has almost completely eliminated serious driver injury, while simultaneously increasing the number of accidents per race" (Adam Pope and Robert D. Tollison, 2010)(2). Due in part to Peltzman's work, studying unintended effects of various regulations has become a cottage industry. >Regulation/Peltzman, >Regulation/Hilton, >Government policy, >Interventions, >Interventionism. 1. Peltzman, Sam (1975). The Effects of Automobile Safety Regulation. Journal of Political Economy 83, 4: 677-726. 2. Pope, Adam T., and Robert D. Tollison (2010). Rubbin’ Is Racin’: Evidence of the Peltzman Effect from NASCAR. Public Choice 142, 3/4 (March): 507-513._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Peltzman I Samuel Peltzman Political Participation and Government Regulation (History, Culture, and Life) Chicago: University of Chicago Press 1998 Henderson I David R. Henderson Steven Globerman The Essential UCLA School of Economics Vancouver: Fraser Institute. 2019 |
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