Traffic Fatalities: Does Income Inequality Create an Externality?

23 Pages Posted: 20 Jan 2009

See all articles by Nejat Anbarci

Nejat Anbarci

Deakin University - Department of Economics

Mlonica Escaleras

Florida Atlantic University - Department of Economics

Charles A. Register

Florida Atlantic University - Department of Economics

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 showtheoretically 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.

Suggested Citation

Anbarci, Nejat and Escaleras, Monica and Register, Charles A., Traffic Fatalities: Does Income Inequality Create an Externality?. Canadian Journal of Economics, Vol. 42, Issue 1, pp. 244-266, February 2009. Available at SSRN: https://ssrn.com/abstract=1330645 or http://dx.doi.org/10.1111/j.1540-5982.2008.01507.x

Nejat Anbarci

Deakin University - Department of Economics ( email )

70 Elgar road
Burwood, Victoria 3215
Australia

HOME PAGE: http://www.deakin.edu.au/~nejata/

Monica Escaleras

Florida Atlantic University - Department of Economics ( email )

5353 Parkside Dr
Jupiter, FL 33458
United States

Charles A. Register

Florida Atlantic University - Department of Economics ( email )

5353 Parkside Dr
Jupiter, FL 33458
United States
561-297-3000 Ext 73222 (Phone)

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