Citation

Greenstone M. Econ. Inq. 2002; 40(2): 271-278.

Copyright

(Copyright © 2002, John Wiley and Sons)

DOI

10.1093/ei/40.2.271

PMID

unavailable

Abstract

In a recent issue of Economic Inquiry (35[3]: 614-20) Lave and Elias (1997) contend that the 1987 increase in speed limits to 65 mph on rural interstate roads caused a reduction in statewide fatality rates. They argue that increased fatality rates on rural interstates were counterbalanced by declines on other roads due to compensatory reallocations of drivers and state police. This article is unable to find any empirical evidence of these reallocations. This removes the empirical basis for their hypothesis and implies that the effect of the 65-mph speed limit can be inferred from an analysis of rural interstates only. On these roads, fatality rates increased dramatically.

Language: en