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Article
Speed Variance, Enforcement, and the Optimal Speed Limit
Economics Letters (1993)
  • PHILIP E GRAVES, University of Colorado at Boulder
  • DWIGHT LEE, Southern Methodist University
  • ROBERT L SEXTON, Pepperdine University
Abstract
A 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.
Keywords
  • optimal speed limit,
  • pubic policy,
  • highway policy
Publication Date
1993
Citation Information
PHILIP 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/rsexton/6/