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An exploration of the offset hypothesis using disaggregate data: The case of airbags and antilock brakes

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Author Info
Clifford Winston ()
Vikram Maheshri
Fred Mannering

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Abstract

The offset hypothesis predicts consumers adapt to innovations that improve safety by becoming less vigilant about safety. Previous tests have used aggregate data that may confound the effect of a safety policy with those consumers who are most affected by it. We test the hypothesis using disaggregate data to analyze the effects of airbags and antilock brakes on automobile safety. We find that safety-conscious drivers are more likely than other drivers to acquire airbags and antilock brakes but these safety devices do not have a significant effect on collisions or injuries, suggesting drivers trade off enhanced safety for speedier trips. Copyright Springer Science + Business Media, LLC 2006

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File URL: http://hdl.handle.net/10.1007/s11166-006-8288-7
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Publisher Info
Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 32 (2006)
Issue (Month): 2 (March)
Pages: 83-99
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:jrisku:v:32:y:2006:i:2:p:83-99

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Web page: http://www.springerlink.com/link.asp?id=100299

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Related research
Keywords: Offsetting behavior; Automobile safety; Airbags;

References listed on IDEAS
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  1. Vassilis A. Hajivassiliou & Axel Borsch-Supan, 1990. "Smooth Unbiased Multivariate Probability Simulators for Maximum Likelihood Estimation of Limited Dependent Variable Models," Cowles Foundation Discussion Papers 960, Cowles Foundation, Yale University. [Downloadable!]
    Other versions:
  2. Lindsay Noble Calkins & Thomas J. Zlatoper, 2001. "The Effects of Mandatory Seat Belt Laws on Motor Vehicle Fatalities in the United States," Social Science Quarterly, The Southwestern Social Science Association, vol. 82(4), pages 716-732. [Downloadable!] (restricted)
  3. Steven D. Levitt & Jack Porter, 2001. "Sample Selection In The Estimation Of Air Bag And Seat Belt Effectiveness," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 603-615, November. [Downloadable!] (restricted)
    Other versions:
  4. Lave, Lester B & Weber, Warren E, 1970. "A Benefit-Cost Analysis of Auto Safety Features," Applied Economics, Taylor and Francis Journals, vol. 2(4), pages 265-75.
  5. Sen, Anindya, 2001. "An Empirical Test of the Offset Hypothesis," Journal of Law & Economics, University of Chicago Press, vol. 44(2), pages 481-510, October.
  6. Alma Cohen & Liran Einav, 2003. "The Effects of Mandatory Seat Belt Laws on Driving Behavior and Traffic Fatalities," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 828-843, 07. [Downloadable!] (restricted)
  7. Traynor, Thomas L, 1993. " The Peltzman Hypothesis Revisited: An Isolated Evaluation of Offsetting Driver Behavior," Journal of Risk and Uncertainty, Springer, vol. 7(2), pages 237-47, October.
  8. McCarthy, Patrick S., 1999. "Public policy and highway safety: a city-wide perspective," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 231-244, March. [Downloadable!] (restricted)
  9. Peltzman, Sam, 1975. "The Effects of Automobile Safety Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 677-725, August. [Downloadable!] (restricted)
  10. Hausman, J. A. & Abrevaya, Jason & Scott-Morton, F. M., 1998. "Misclassification of the dependent variable in a discrete-response setting," Journal of Econometrics, Elsevier, vol. 87(2), pages 239-269, September. [Downloadable!] (restricted)
  11. David W. Harless & George E. Hoffer, 2003. "Testing for Offsetting Behavior and Adverse Recruitment Among Drivers of Airbag-Equipped Vehicles," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 70(4), pages 629-650. [Downloadable!] (restricted)
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