This study contributes to the literature by using provincial data in Canada between 1980 and 1996 to analyze the effect of seat belt use on traffic fatalities. Empirical estimates from first stage instrumental-variables regressions suggest that the enactment of mandatory seat belt laws is...

Estimating the efficacy of seat belt use is important as compensating risk-taking or "offsetting behaviour" by drivers may attenuate benefits from vehicle safety regulation. However, evidence on partial-offsetting behaviour from previous studies may simply reflect simultaneity bias, as...