Posts Tagged ‘Peltzman Effect’

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    Unintended Consequences: Cholesterol, Cars and Unemployment

    May 3, 13 • 164 Views • Demand, Supply, and Markets, Economic Debates, Economic History, Environment, Innovation, Labor, Money and Monetary Policy, UncategorizedNo Comments

    Statins, seat belts and unemployment benefits reduce some of life’s risks. Yes? Not always… Told that statin medication would diminish high cholesterol, some people eat more cheese, more ice cream, more steak. The result? Less healthy diets.

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    The Cost of Seat Belts

    Nov 6, 11 • 193 Views • Behavioral Economics, Regulation, Thinking EconomicallyNo Comments

    Can we assume that seat belts make us safer? Maybe. Writing about seat belts in 1975, University of Chicago economist Sam Peltzman described what we now call the Peltzman Effect. Sam Peltzman said that yes, seat belts do make us safer. However, making us