A Theoretic Reappraisal of the Offsetting Behavior Hypothesis

Jon R Neill

Journal of Regulatory Economics, 1993, vol. 5, issue 4, 435-40

Abstract: This paper examines the theoretical basis of the claim that product safety regulation may not lead to either a decrease in accident rates or an increase in consumer health. We find that the technology which determines the household's probability of having an accident may guarantee that regulation will lower accident rates, and that therefore, predictions about the effect of regulation on the incidence of accidents can be made without detailed knowledge of consumer behavior. Copyright 1993 by Kluwer Academic Publishers

Date: 1993
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