How Effective Are Non-monetary Instruments for Safe Driving? Panel Data Evidence on the Effect of the Demerit Point System in Denmark
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How Effective Are Non-monetary Instruments for Safe Driving? Panel Data Evidence on the Effect of the Demerit Point System in Denmark. / Abay, Kibrom Araya.
In: The Scandinavian Journal of Economics, Vol. 120, No. 3, 2018, p. 894-924.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - How Effective Are Non-monetary Instruments for Safe Driving? Panel Data Evidence on the Effect of the Demerit Point System in Denmark
AU - Abay, Kibrom Araya
N1 - JEL Codes: D12, H76, K42, R41, R48
PY - 2018
Y1 - 2018
N2 - Using unusually rich longitudinal traffic offense data, this paper exploits a reform that introduced a point recording scheme in Denmark to estimate the behavioral responses of drivers to a non-monetary penalty based on demerit points. We find that drivers exhibit substantial behavioral responses to each demerit point assigned to their driving license. We also find that drivers’ effort, and hence response, increases with the number of demerit points accumulated. Depending on the number of demerit points accumulated, drivers with one or more demerit points reduced their frequency of traffic offenses by 9–34 percent.
AB - Using unusually rich longitudinal traffic offense data, this paper exploits a reform that introduced a point recording scheme in Denmark to estimate the behavioral responses of drivers to a non-monetary penalty based on demerit points. We find that drivers exhibit substantial behavioral responses to each demerit point assigned to their driving license. We also find that drivers’ effort, and hence response, increases with the number of demerit points accumulated. Depending on the number of demerit points accumulated, drivers with one or more demerit points reduced their frequency of traffic offenses by 9–34 percent.
KW - Faculty of Social Sciences
KW - Non -monetary penalties
KW - point recording
KW - demerit points
KW - Behavioral response
KW - deterrence
KW - public road safety
U2 - 10.1111/sjoe.12235
DO - 10.1111/sjoe.12235
M3 - Journal article
VL - 120
SP - 894
EP - 924
JO - Scandinavian Journal of Economics
JF - Scandinavian Journal of Economics
SN - 0347-0520
IS - 3
ER -
ID: 164854271