An exploration of the offset hypothesis using disaggregate data: The case of airbags and antilock brakes

摘要

The offset hypothesis, which assumes consumers adapt to innovations which improve safety aspects of unit operations and become less vigilant about safety, is tested by using disaggregate data to.. analyze the effects of airbags and antilock brakes on automobile safety. The study develops a model to jointly I estimate the determinants of automobile accident outcomes and driver choice whether to acquire a vehicle with safety devices such as airbag and antilock brakes and finds that drivers who are safety conscious prefer to have such safety devices incorporated in their vehicles even if they may have a significant effect on collisions or injuries. (25 refs.)