Thursday, October 29, 2009

More Peltzman Effects in NASCAR

From Public Choice, "Rubbin' is Racin'" by Pope and Tollison:
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.
FYI: If you were wondering how this differed from a 2007 paper by Nesbit and Sobel, according to footnote 5, page 5, the Pope and Tollison dataset covers the implementation of the HANS device.

2 comments:

Anonymous said...

Geez, that's sufficient for a "contribution" these days??

Justin M Ross said...

Maybe my FYI was misleading. I wondered how it was different and that was where I found the answer.

Pope and Tollison primarily focus on the HANS device in the paper, saying that it is a "radical and discrete safety improvement." Apparently, Nebit & Sobel paper did not have the HANS implementation in it.

So, its selling point was probably the focus on a big discrete change + the fact it replicates results by other authors.

Best,
JR