The Effect of Automobile Insurance and Accident Liability Laws on Traffic Fatalities*

@article{Cohen2004TheEO,
  title={The Effect of Automobile Insurance and Accident Liability Laws on Traffic Fatalities*},
  author={A. Cohen and Rajeev H. Dehejia},
  journal={The Journal of Law and Economics},
  year={2004},
  volume={47},
  pages={357 - 393}
}
  • A. Cohen, Rajeev H. Dehejia
  • Published 2004
  • Computer Science, Economics, Business
  • The Journal of Law and Economics
  • This paper investigates the incentive effects of automobile insurance, compulsory insurance laws, and no‐fault liability laws on driver behavior and traffic fatalities. We analyze a panel of 50 U.S. states and the District of Columbia for 1970–98, a period in which many states adopted compulsory insurance regulations and/or no‐fault laws. Using an instrumental variables approach, we find evidence that automobile insurance has moral hazard costs, leading to an increase in traffic fatalities. We… CONTINUE READING
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