Edlin, Aaron S.; Karaca-Mandic, Pinar - Institute of Business and Economic Research (IBER), … - 2005
We estimate auto accident externalities (more specifically insurance externalities) using panel data on state …-average insurance premiums and loss costs. Externalities appear to be substantial in traffic dense states: in California, for example …, the accident externality per driver in low traffic states appears quite small. On balance, accident externalities are so …