TRAFFIC FATALITIES IN TAIWAN

A simple model of traffic fatalities has been developed for Taiwan. The direction of impact of each explanatory variable is as expected. Income is positively related to fatalities. Motorcycles are positively related to fatalities though perhaps of a smaller magnitude than might be expected. Trucks yield a larger impact than in the case of motorcycles. The price of an accident and the price of petrol have negative impacts on fatalities. A simple benefit-cost analysis of a motorcycle helmet law is presented. Under certain restrictive assumptions, such a law might be justified on strictly economic grounds.(a)