2003
DOI: 10.1046/j.0022-4367.2003.00068.x
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Testing for Offsetting Behavior and Adverse Recruitment Among Drivers of Airbag‐Equipped Vehicles

Abstract: Earlier studies reported that an insurance industry index of personal-injury claims rose after automobiles adopted driver's side airbags and that drivers of airbag-equipped vehicles were more likely to be at fault in fatal multivehicle accidents. These findings can be explained by the offsetting behavior hypothesis or by at-risk drivers systematically selecting vehicles with airbags (i.e., adverse recruitment). We test for offsetting behavior and adverse recruitment after airbag adoption using a database conta… Show more

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Cited by 19 publications
(17 citation statements)
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References 33 publications
(53 reference statements)
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“…Studies of the effectiveness of vehicle safety features such as airbags and anti-lock brakes claim that improved standards have significantly reduced fatality rates (Farmer et al, 1997;Harless and Hoffer, 2003). Based on analysis of an insurance industry generated dataset, Peterson et al (1995), however, contend that increases in injury claims following the initiation of an airbag system is a result of offsetting behavior rather than a sorting of auto buyers.…”
Section: 22d Vehicle Safety Features and Vehicle Inspectionsmentioning
confidence: 99%
See 1 more Smart Citation
“…Studies of the effectiveness of vehicle safety features such as airbags and anti-lock brakes claim that improved standards have significantly reduced fatality rates (Farmer et al, 1997;Harless and Hoffer, 2003). Based on analysis of an insurance industry generated dataset, Peterson et al (1995), however, contend that increases in injury claims following the initiation of an airbag system is a result of offsetting behavior rather than a sorting of auto buyers.…”
Section: 22d Vehicle Safety Features and Vehicle Inspectionsmentioning
confidence: 99%
“…Other studies of the effectiveness of inspections and vehicle safety features such as airbags and antilock brakes have found little evidence of offsetting behavior and claim that improved standards have significantly reduced fatality rates (Loeb, 1990;Loeb and Gilad, 1984;Farmer et al, 1997;Harless and Hoffer, 2003).…”
Section: Merrell Et Al's (1999) Finding That Vehicle Safety Inspectimentioning
confidence: 99%
“…Following Peltzman (1975), the most commonly investigated phenomenon is road safety. Various studies have, for example, attempted to determine if adoption of new technologies such as airbags or antilock braking systems lead to a reduction in driver safety through increased speeds (see, e.g., Winston, et al (2006) and Harless and Ho¤er (2003)). Other papers empiri-3 Alternatively, one can think of sexual relationships that may result in a sexually transmitted disease (STD).…”
Section: Related Literaturementioning
confidence: 99%
“…Others have subsequently developed explicit behavioral models to investigate the implications of o¤setting behavior for a wide range of applications. A vast number of papers have also empirically investigated the prevalence and magnitude of o¤setting behavioral e¤ects (see Harless and Ho¤er (2003) and references therein). Our goal is to develop a theoretical approach that will provide insights into how the broad range of phenomena with o¤setting behavior should be modeled.…”
Section: Introductionmentioning
confidence: 99%
“…1 For instance, Sen (2001) finds that Canadian mandatory seatbelt legislation did not reduce traffic fatalities by the predicted amount due to drivers offsetting some of the gains in safety from seatbelt usage by driving more aggressively. Harless and Hoffer (2003) show that the rise in personal injury claims after airbag adoption can be attributed to moral hazard and vehicle ownership pattern. They also find that rental car drivers are much more likely to commit grievous acts than other drivers.…”
Section: Literature Reviewmentioning
confidence: 99%