Speed Variance, Enforcement, and the Optimal Speed Limit

7 Pages Posted: 3 Aug 2011  

Philip E. Graves

University of Colorado at Boulder - Department of Economics

Dwight Lee

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics

Robert L. Sexton

Pepperdine University - Economics Department

Date Written: 1993

Abstract

A model of the optimal speed limit is developed which explicitly recognizes the role of average speed, speed variance, and the level of enforcement. An unusual result emerges, namely that a higher speed limit may be optimal when reducing the variance in highway speeds reduces accident externalities.

Keywords: highway speeds, highway speed variance, public policy, optimal speed limits, statute enforcement

JEL Classification: D02, D04, D03, D11, K10, K14, K42, R41

Suggested Citation

Graves, Philip E. and Lee, Dwight and Sexton, Robert L., Speed Variance, Enforcement, and the Optimal Speed Limit (1993). Economics Letters, Vol. 42, pp. 237-243, 1993. Available at SSRN: https://ssrn.com/abstract=1904038

Philip E. Graves (Contact Author)

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309-0256
United States

Dwight Lee

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics ( email )

Athens, GA 30602-6254
United States

Robert L. Sexton

Pepperdine University - Economics Department ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States

Paper statistics

Downloads
54
Rank
304,725
Abstract Views
442