Thursday, November 20, 2008

Primetime Peltzman

Being the econ nerd that I am, I was thrilled to hear Sam Pelztman's 1975 Journal of Political Economy article referenced in tonight's episode of CSI. It was brought up in the context of a fatal accident where the intoxicated driver was found wearing his seat belt.

Peltzman found that as more safety devices are added to automobiles, drivers tend to engage in more reckless behavior because of a perceived decrease in the associated risk. For example, a driver will tend to drive less carefully in a car equipped with front and side airbags than he might in a car without these safety devices. A later (1984) American Economic Review article by Robert Crandall and John Graham demonstrated that this "Peltzman Effect" does not completely offset the benefits of including seat belts and other safety features on automobiles (so you should still buckle up!), but the effect is still there.

I always enjoy seeing good economic theory getting a little airtime.

No comments:

Post a Comment