Economic Determinants of Driver's Behavior in Minas Gerais

The aim of the paper is to evaluate the behavior of drivers when they face a safe-traffic environment. Some studies suggest that the laws that demand auto makers to produce safer vehicles also stimulate their drivers to drive carelessly, since the cost of driving carefully decreases. Likewise, a safer traffic environment or less dangerous surroundings can stimulate drivers to drive more aggressively and less carefully. This study tries to test whether the undesirable behavior described by Peltzman (1975) is observed on the highways and roads of the State of Minas Gerais, Brazil. Estimates based on data found in the Brazilian Federal Road Police's accident report databank confirm drivers'' lack of attention in safer environments. The results suggest that careless behavior in traffic increases when safer conditions prevail.