Heterogeneity of the Accident Externality from Driving

22 Pages Posted: 25 Nov 2014

See all articles by Rachel J. Huang

Rachel J. Huang

National Central University at Taiwan - Department of Finance; Graduate Institute of Finance, NTUST

Larry Y. Tzeng

National Taiwan University - Department of Finance

Kili C. Wang

Tamkang University

Date Written: December 2014

Abstract

This article examines the accident externality from driving in terms of loss probability and severity by using a unique individual‐level data set with more than 3 million observations from Taiwan. Two types of accident externality are, respectively, measured: the average number of kilometers driven per month per vehicle and the total number of speeding tickets per month. For both variables, we find significant evidence to support the existence of the accident externality. Moreover, we find that the accident externality is heterogeneous in terms of the vehicles’ characteristics.

Suggested Citation

Huang, Rachel J. and Tzeng, Larry and Wang, Kili C., Heterogeneity of the Accident Externality from Driving (December 2014). Journal of Risk and Insurance, Vol. 81, Issue 4, pp. 735-756, 2014. Available at SSRN: https://ssrn.com/abstract=2530246 or http://dx.doi.org/10.1111/j.1539-6975.2013.01517.x

Rachel J. Huang (Contact Author)

National Central University at Taiwan - Department of Finance ( email )

No. 300, Jhongda Rd, Jhogli City, Taoyuan, Taiwan,
Jhongli, TY 32001
Taiwan

Graduate Institute of Finance, NTUST ( email )

#43,Sec.4
Keelung Rd
Taipei, Taipei 106
Taiwan

Larry Tzeng

National Taiwan University - Department of Finance ( email )

1 Sec. 4, Roosevelt Road
Taipei, 106
Taiwan

Kili C. Wang

Tamkang University ( email )

No.151, Yingzhuan Rd
Taiwan, Taipei Hsien 25137
China

Register to save articles to
your library

Register

Paper statistics

Downloads
1
Abstract Views
165
PlumX Metrics