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Catching or Fining Speeders: A Political Economy Approach

Author

Listed:
  • Eef Delhaye
  • Stef Proost
  • Sandra Rousseau

Abstract

According to Becker (1968) it is best to use very high fines and low inspection probabilities to deter traffic accidents because inspection is costly. This paper uses a political economy model to analyse the choice of the fine and the inspection probability. There are two lobby groups: the vulnerable road users and the ‘strong’ road users. If only vulnerable road users are effective in lobbying, we find that the expected fine is higher than if only the interests of car drivers are taken into account. When we consider the choice between inspection probability and the magnitude of the fine for a given expected fine, we find that the fine preferred by the vulnerable road users is higher than socially optimal. The reverse holds if only the car drivers are effective lobbyists. The orders of magnitude are illustrated numerically for speeding and contrasted with current fines for drunk driving in the European Union.

Suggested Citation

  • Eef Delhaye & Stef Proost & Sandra Rousseau, 2007. "Catching or Fining Speeders: A Political Economy Approach," Working Papers of Department of Economics, Leuven 543602, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    • Handle: RePEc:ete:ceswps:543602
    Note: paper number ETE WP 2007-02
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    File URL: https://lirias.kuleuven.be/retrieve/391852
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