Incentives for Improving Driving Behavior Ex Ante/Ex Post Considerations

Ever since the passage of the National Traffic and Motor Vehicle Safety Act in 1966, questions of the role of government in dealing with automobile safety have been debated in the newspapers as well as the professional journals. The issue surfaced in the headlines again in July 1984 when Transportation Secretary, Elizabeth H. Dole, required air bags or automatic seat belts on all new passenger automobiles sold in the United States by 1989 unless two thirds of the population became covered by mandatory seat belt laws through state legislatures. A month prior to this ruling New York passed a law imposing a fine up to $50 dollars for failure to wear seat belts. Illinois is expected to follow shortly.

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