Traffic fatalities: does income inequity create an externality?

Anbarci, Nejat, Escaleras, Monica and Register, Charles 2009, Traffic fatalities: does income inequity create an externality?, Canadian journal of economics, vol. 42, no. 1, pp. 244-266, doi: 10.1111/j.1540-5982.2008.01507.x.

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Title Traffic fatalities: does income inequity create an externality?
Author(s) Anbarci, NejatORCID iD for Anbarci, Nejat
Escaleras, Monica
Register, Charles
Journal name Canadian journal of economics
Volume number 42
Issue number 1
Start page 244
End page 266
Total pages 23
Publisher Wiley-Blackwell Publishing, Inc.
Place of publication Hoboken, NJ
Publication date 2009-02
ISSN 0008-4085
Keyword(s) O57
Summary 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 show theoretically 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.
Language eng
DOI 10.1111/j.1540-5982.2008.01507.x
Field of Research 140208 Health Economics
140217 Transport Economics
Socio Economic Objective 919999 Economic Framework not elsewhere classified
HERDC Research category C1 Refereed article in a scholarly journal
HERDC collection year 2009
Copyright notice ©2009, Canadian Economics Association
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Document type: Journal Article
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
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