Speed Variance, Enforcement, and the Optimal Speed LimitEconomics Letters (1993)
AbstractA model of the optimal speed limit is developed which explicitly recognizes the roles of average speed, speed variance, and the level of enforcement. An unusual result emerges, namely that a higher speed limit may be optimal when reducing the variance in highway speeds reduces accident externalities.
- optimal speed limit,
- pubic policy,
- highway policy
Citation InformationPHILIP E GRAVES, DWIGHT LEE and ROBERT L SEXTON. "Speed Variance, Enforcement, and the Optimal Speed Limit" Economics Letters Vol. 42 (1993)
Available at: http://works.bepress.com/philip_graves/64/