Abstract
The effectiveness of safety regulation can be enhanced or offset by various forms of behavioral feedback. This study provides estimates of the effectiveness of motorcycle helmet laws in reducing fatalities based on pooled time-series and cross-sectional data for the United States during the years 1975 to 1984. Estimates from the model suggest that the presence of a helmet-wearing law induces a 12 to 22 percent decline in the motorcycle mortality problem. The results are consistent with the view that helmet laws are an effective public health policy, at least in the short run. However, there is also some evidence of gradual “risk-compensation” behavior: The immediate rise in fatalities following repeal of helmet laws appears to dissipate gradually at a rate of roughly 2.5 percent per year. This result suggests that future studies of safety regulation should consider longrun as well shortrun behavioral responses.
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