IDEAS home Printed from https://ideas.repec.org/a/wly/canjec/v42y2009i1p244-266.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1540-5982.2008.01507.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-5982.2008.01507.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Angus Deaton, 2003. "Health, Inequality, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 113-158, March.
    2. McCarthy, Patrick S, 1996. "Market Price and Income Elasticities of New Vehicles Demand," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 543-547, August.
    3. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    4. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," The World Bank Economic Review, World Bank, vol. 10(3), pages 565-591, September.
    5. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross‐Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    6. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," The World Bank Economic Review, World Bank, vol. 10(3), pages 565-591, September.
    7. Robert J. Waldmann, 1992. "Income Distribution and Infant Mortality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(4), pages 1283-1302.
    8. Knack, Stephen & Keefer, Philip, 1995. "Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Indicators," MPRA Paper 23118, University Library of Munich, Germany.
    9. White, Michelle J, 2004. "The "Arms Race" on American Roads: The Effect of Sport Utility Vehicles and Pickup Trucks on Traffic Safety," Journal of Law and Economics, University of Chicago Press, vol. 47(2), pages 333-355, October.
    10. David Bishai & Asma Quresh & Prashant James & Abdul Ghaffar, 2006. "National road casualties and economic development," Health Economics, John Wiley & Sons, Ltd., vol. 15(1), pages 65-81, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rui Feng & Zhuqing Zhang & Zonghao Li & Ge Meng & Jian Liu, 2024. "Building a Sustainable Future: Enhancing Construction Safety through Macro-Level Analysis," Sustainability, MDPI, vol. 16(17), pages 1-27, September.
    2. Vallejo-Borda, Jose Agustin & Barchelot-Aceros, Laura Juliana & Barrero, German A. & Ortiz-Ramirez, Hernan Alberto & Pabón-Poches, Daysy Katherine & Silva-Fernández, Claudia Susana, 2023. "Addressing pedestrian perceived externalities influenced by motor vehicles: A perspective from curb space typologies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 178(C).
    3. Law, Teik Hua, 2015. "Factors associated with the relationship between non-fatal road injuries and economic growth," Transport Policy, Elsevier, vol. 42(C), pages 166-172.
    4. Carrieri, Vincenzo & Davillas, Apostolos & de Oliveira, Victor Hugo, 2023. "On the Road to Equity: Examining Income-Related Inequalities in Ownership of Safer Vehicles," IZA Discussion Papers 16049, Institute of Labor Economics (IZA).
    5. Teik Hua Law & Robert B. Noland & Andrew W. Evans, 2013. "Factors Associated with the Enactment of Safety Belt and Motorcycle Helmet Laws," Risk Analysis, John Wiley & Sons, vol. 33(7), pages 1367-1378, July.
    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. 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.
    10. Morten Nyborg Støstad & Frank Cowell, 2021. "Inequality as an Externality: Consequences for Tax Design," Working Papers halshs-03495989, HAL.
    11. 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.
    12. 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.
    13. Yakubu, Ahmed T. & Ajide, Folorunsho M. & Abdulrahman, Idris A., 2023. "Income Inequality and Road Transport Accidents in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 11(2), March.
    14. 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.
    15. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nejat Anbarci & Monica Escaleras & Charles Register, 2005. "Income, Income Inequality and the “Hidden Epidemic” of Traffic Fatalities," Working Papers 05002, Department of Economics, College of Business, Florida Atlantic University, revised Aug 2006.
    2. Glaeser, Edward & Scheinkman, Jose & Shleifer, Andrei, 2003. "The injustice of inequality," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 199-222, January.
    3. Eric Akobeng, 2017. "Gross Capital Formation, Institutions and Poverty in Sub-Saharan Africa," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 20(2), pages 136-164, April.
    4. Yo Chul Choi & David Hummels & Chong Xiang, 2006. "Explaining Import Variety and Quality: The Role of the Income Distribution," NBER Working Papers 12531, National Bureau of Economic Research, Inc.
    5. Herzer, Dierk & Nunnenkamp, Peter, 2015. "Income inequality and health: Evidence from developed and developing countries," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-56.
    6. Rafael Di Tella & Robert MacCulloch, 2009. "Why Doesn't Capitalism Flow to Poor Countries?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 40(1 (Spring), pages 285-332.
    7. Lisa Chauvet & Denis Cogneau & Jean-David Naudet, 2008. "Sélectivité et égalité des chances dans l'allocation de l'aide internationale. Une analyse de la dernière décennie," Economie & Prévision, La Documentation Française, vol. 0(5), pages 23-38.
    8. Nobuhiro Mizuno & Katsuyuki Naito & Ryosuke Okazawa, 2017. "Inequality, extractive institutions, and growth in nondemocratic regimes," Public Choice, Springer, vol. 170(1), pages 115-142, January.
    9. Nejat Anbarci & Monica Escaleras & Charles A. Register, 2012. "From Cholera Outbreaks to Pandemics: The Role of Poverty and Inequality," The American Economist, Sage Publications, vol. 57(1), pages 21-31, May.
    10. Stimpfle, Alexander & Stadelmann, David, 2015. "The Impact of Fundamental Development Factors on Different Income Groups: International Evidence," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113128, Verein für Socialpolitik / German Economic Association.
    11. Richard Bluhm & Adam Szirmai, 2011. "Institutions, Inequality and Growth: A review of theory and evidence on the institutional determinants of growth and inequality," Papers inwopa634, Innocenti Working Papers.
    12. Ark, Bart van, 2004. "Productivity and employment growth: an empirical review of long and medium run evidence : background working paper for the world employment report 2004," GGDC Research Memorandum 200471, Groningen Growth and Development Centre, University of Groningen.
    13. Alberto Chong & Mark Gradstein, 2007. "Inequality and Institutions," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 454-465, August.
    14. Fabrizio Carmignani, 2007. "Efficiency of Institutions, Political Stability and Income Dynamics," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(1), pages 6-30, February.
    15. Martin Gassebner & Noel Gaston & Michael J Lamla, 2008. "Relief For The Environment? The Importance Of An Increasingly Unimportant Industrial Sector," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 160-178, April.
    16. World Bank, 2007. "Bangladesh : Strategy for Sustained Growth, Volume 1. Summary Report," World Bank Publications - Reports 7765, The World Bank Group.
    17. Choi, Yo Chul & Hummels, David & Xiang, Chong, 2009. "Explaining import quality: The role of the income distribution," Journal of International Economics, Elsevier, vol. 77(2), pages 265-275, April.
    18. Almanzar, Miguel & Torero, Maximo, 2017. "Distributional Effects of Growth and Public Expenditures in Africa: Estimates for Tanzania and Rwanda," World Development, Elsevier, vol. 95(C), pages 177-195.
    19. Ken Judge & Iain Paterson, 2001. "Poverty, Income Inequality and Health," Treasury Working Paper Series 01/29, New Zealand Treasury.
    20. Tilman Tacke & Robert J. Waldmann, 2013. "Infant mortality, relative income and public policy," Applied Economics, Taylor & Francis Journals, vol. 45(22), pages 3240-3254, August.

    More about this item

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:canjec:v:42:y:2009:i:1:p:244-266. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1540-5982 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.