The Initial Evidence Based on Fatality Rates—Peltzman

The Initial Evidence Based on Fatality Rates — Peltzman 

Sam Peltzman s methodological approach differs from the technological approach in that he focuses on human behavior especially driver choice. He begins with an individual benefit-cost framework to traffic safety and combines with it findings from other safety studies to construct counterfactual estimates of traffic fatality rates, hypothetical rates which would have occurred without a national traffic safety policy. We will examine his study in some detail because most of the studies are similar m crucial aspects and hence we can examine other studies more quickly. Peltzman s study is pivotal in that it was one of the first comprehensive evaluative studies. It reintroduced human behavior into traffic safety thinking. 

ATDR= -0.172P + 0.884Y -I- -0.074T + -.359A -I- 1.843S + -.827K 

Where ATDR is the adjusted total death rate (per vehicle mile)  

P is an index of accident (dollar) costs based on physician and hospital costs and insurance premiums  

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