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1993

PHILIP E GRAVES

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Full-Text Articles in Political Economy

Speed Variance, Enforcement, And The Optimal Speed Limit, Philip E. Graves, Dwight Lee, Robert L. Sexton Jan 1993

Speed Variance, Enforcement, And The Optimal Speed Limit, Philip E. Graves, Dwight Lee, Robert L. Sexton

PHILIP E GRAVES

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.