Drinking Age Laws and Highway Mortality Rates: Cause and Effect

Henry Saffer () and Michael Grossman

Economic Inquiry, 1987, vol. 25, issue 3, 403-17

Abstract: This paper presents estimates of the effects of the drinking age and beer taxes on youth motor vehicle mortality. A simultaneous equation model is used and the resu lts show that the drinking age is a function of mortality rates. The results also show that for eighteen to twenty year-old drivers, an in crease in the drinking age to twenty-one, which is approximately 8 pe rcent, would reduce mortality by approximately 18 percent. Also a 100 percent increase in the real beer tax, which is approximately $1.50 per case, would reduce highway mortality by about 27 percent. Copyright 1987 by Oxford University Press.

Date: 1987
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