Public Choice

, Volume 142, Issue 3, pp 507–513

“Rubbin’ is racin''': evidence of the Peltzman effect from NASCAR

Authors

    • Federal Reserve Bank of Kansas City
  • Robert D. Tollison
    • John E. Walker Department of EconomicsClemson University
Article

DOI: 10.1007/s11127-009-9548-2

Cite this article as:
Pope, A.T. & Tollison, R.D. Public Choice (2010) 142: 507. doi:10.1007/s11127-009-9548-2

Abstract

The Peltzman Effect is a well known and controversial theory in the literature. Studies have struggled to find a dataset that can accurately test for the presence of the effect. We have created a unique dataset and use a natural experiment from the sport of stock car racing to test the theory. Using race-level data from NASCAR events, we find strong evidence that a major safety regulation has led to more on-track accidents and an increased risk to both spectators and pit crew members.

Keywords

NascarPeltzman effectMoral hazardCaution laps

Copyright information

© Springer Science+Business Media, LLC 2009