A Bayesian and Classical Econometric Evaluation of the Effect of Cell Phones on Motor Vehicle Fatality Rates

Richard Fowles, Peter D. Loeb and William A Clarke ()

Working Papers Rutgers University, Newark from Department of Economics, Rutgers University, Newark

Abstract: This paper examines the potential effect of cell phones on motor vehicle fatality rates normalized for other driving related and socioeconomic factors. The model used is nonlinear so as to address both life-taking and life-saving attributes of cell phones. The models are evaluated using classical methods along with Bayesian Extreme Bounds Analysis (EBA). The use of both classical and Bayesian methods diminishes the model and parameter uncertainties which afflict more conventional modeling methods which rely on only one of the two methods. The results indicate the presence of both life-taking and life-saving attributes of cell phones on motor vehicle fatality rates depending on the volume of cell phone subscribers in existence.

Keywords: Motor Vehicle Fatality Rates; Cell Phones; Bayesian Econometric Methods; Extreme Bounds Analysis; Classical Econometric Methods (search for similar items in EconPapers)
JEL-codes: L92 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hea
Date: 2009-02
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Persistent link: http://EconPapers.repec.org/RePEc:run:wpaper:2009-001

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