Public Choice

, Volume 142, Issue 3–4, pp 507–513 | Cite as

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

Article

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

Nascar Peltzman effect Moral hazard Caution laps 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Fielden, G. (1994). Forty plus four 1990–1993: First supplement to the forty years of stock car racing series. Surfside Beach: Galfield Press. Google Scholar
  2. Graham, J. D., & Garber, S. (1984). Evaluating the effects of automobile safety regulation. Journal of Policy Analysis and Management, 3, 206–224. CrossRefGoogle Scholar
  3. Hoffer, G., & Millner, E. (1992). Are drivers’ behavioral changes negating the efficacy of mandated safety regulations? Regulation, 15, 15–17. Google Scholar
  4. Hoffer, G., & Peterson, S.P. (1994). The impact of airbag adoption on relative personal injury and absolute collision insurance claims. Journal of Consumer Research: An Interdisciplinary Quarterly, 20(4), 657–662. Google Scholar
  5. Lund, A., & Hazelbaker, K. (1993). Reviewing the evidence on air bags. Regulation, 16, 3–5. Google Scholar
  6. McGee, R. (2007). NASCAR nation’s big story: The cost of racing. Retrieved March 20, 2007, from http://msn.foxsports.com.
  7. Nesbit, T. M., & Sobel, R. S. (2007). Automobile safety regulation and the incentive to drive recklessly: Evidence from NASCAR. Southern Economic Journal, 74, 71–84. Google Scholar
  8. Nextel Cup Standing and Statistics. Retrieved November 2, 2007, from http://racing-reference.info/.
  9. O’Roark, J. B., & Wood, W. C. (2004). Safety at the racetrack: Results of restrictor plates in superspeedway competition. Southern Economic Journal, 71, 118–129. CrossRefGoogle Scholar
  10. Peltzman, S. (1975). The effects of automobile safety regulation. Journal of Political Economy, 83, 677–726. CrossRefGoogle Scholar
  11. Potter, J. M. (2007). Estimating the offsetting effects of driver behavior in response to safety regulation: The case of formula one racing. Dissertation, Kansas State University. Google Scholar
  12. Risa, A. E. (1994). Adverse incentives from improved technology: Traffic safety regulation in Norway. Southern Economic Journal, 60, 844–857. CrossRefGoogle Scholar
  13. Risa, A. E. (1992). Public regulation of private accident risk: The moral hazard of technological improvements. Journal of Regulatory Economics, 335–346. Google Scholar
  14. Robertson, L. S. (1977). A critical analysis of Peltzman’s ‘The effects of automobile safety regulation’. Journal of Economic Issues, 11, 587–600. Google Scholar
  15. The Official NASCAR Preview and Press Guide (1996–2004 Editions). Charlotte: UMI. Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Federal Reserve Bank of Kansas CityKansas CityUSA
  2. 2.John E. Walker Department of EconomicsClemson UniversityClemsonUSA

Personalised recommendations