Peltzman Effect

Peltzman Effect

The Peltzman Effect is the hypothesized tendency of people to react to a safety regulation by increasing other risky behavior, offsetting some or all of the benefit of the regulation. It is named after Sam Peltzman, a University of Chicago Graduate School of Business Economics professor.

From the foreword of a talk by Peltzman at the American Enterprise Institute:

When the offsetting risky behavior encouraged by the safety regulation has negative externalities, the Peltzman effect can result in redistributing risk to innocent bystanders who would behave in a risk-averse manner even without the regulation. For example, if some drivers with a high tolerance for risk who would not otherwise wear a seatbelt respond to a seatbelt law by driving less safely, there will be more total accidents. Overall injuries and fatalities may still decrease due to a higher percentage of drivers involved in accidents wearing seatbelts, but drivers who would wear seatbelts regardless will see their overall risk increase. Similarly, safety regulations for automobiles may put pedestrians or bicyclists in more danger by encouraging risky behavior in drivers without offering additional protection for pedestrians and cyclists.

ee also

* Risk compensation

External links

* [http://www.chicagogsb.edu/fac/sam.peltzman Sam Peltzman faculty page]
* [http://www.econtalk.org/archives/2006/11/peltzman_on_reg.html Sam Peltzman podcast] Interview at EconTalk
* [http://pcpe.libinst.cz/nppe/3_2/nppe3_2_3.pdf"Regulation and the Wealth of Nations"] ("New Perspectives on Political Economy". Volume 3, Number 2, 2007, pp. 185 – 204)

Notes


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Unsafe at Any Speed — Infobox Book name = Unsafe at Any Speed: The Designed In Dangers of the American Automobile title orig = translator = image caption = Exhibit featuring the book at Henry Ford Museum, Detroit author = Ralph Nader illustrator = cover artist =… …   Wikipedia

  • List of effects — This is a list of names for observable phenonema that contain the word effect, amplified by reference(s) to their respective fields of study. #*3D audio effect (audio effects)A*Accelerator effect (economics) *Accordion effect (physics) (waves)… …   Wikipedia

  • Risk compensation — In ethology, risk compensation is an effect whereby individual people may tend to adjust their behavior in response to perceived changes in risk. It is seen as self evident that individuals will tend to behave in a more cautious manner if their… …   Wikipedia

  • List of economics topics — This aims to be a complete list of the articles on economics. It does not include articles about economists, who are listed in the list of economists. NOTOC A * Accounting Accounting reform Actuary Adaptive expectations Adverse selection Agent… …   Wikipedia

  • HPV vaccine — Vaccine description Target disease human papillomavirus Type Protein subunit Clinical data …   Wikipedia

  • Gun buyback program — A gun buyback program is a program instituted by a police department in a city where gun crime is on the rise, to turn in handguns or other kinds of weapons. A reward is usually posted for these weapons (e.g., gift cards). The phrase Buy back is… …   Wikipedia

  • National Highway Traffic Safety Administration — logo The National Highway Traffic Safety Administration (NHTSA, pronounced nit suh ) is an agency of the Executive Branch of the U.S. government, part of the Department of Transportation. It describes its mission as “Save lives, prevent injuries …   Wikipedia

  • Criticism of the Food and Drug Administration — Numerous governmental and non governmental organizations have criticized the U. S. Food and Drug Administration of either over or under regulation. The U.S. Food and Drug Administration (FDA) is an agency of the United States Department of Health …   Wikipedia

  • American Enterprise Institute — infobox Organization name = American Enterprise Institute size = 300px abbreviation = AEI motto = Competition of ideas is fundamental to a free society. formation = 1943 type = Public Policy Think Tank headquarters = 1150 Seventeenth Street NW… …   Wikipedia

  • Kefauver Harris Amendment — The U.S. Kefauver Harris Amendment or Drug Efficacy Amendment is a 1962 amendment to the Federal Food, Drug, and Cosmetic Act. It introduced a requirement for drug manufacturers to provide proof of the effectiveness and safety of their drugs… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”