Thursday, November 3, 2011

Why seat belts kill (Sam Peltzman explains).

Make the cost of a collision fall and you get more of them.

Hat tip: Mungowitz

2 comments:

  1. Best argument for Libertarianism that I have ever heard, and I am not a Libertarian.

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  2. So the best solution in this case would have tried to keep the rate of wrecks the same while decreasing the fatality percentage for wrecks? What if cars became safer and auto owners were forced to pay a higher percentage of accident costs out of pocket than before? Would that address the Peltzman Effect or just create another wave of hidden consequences that threw the solution out of balance in a new way?

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