TY - JOUR
T1 - Put your FTSE down: Wealth Shocks and Road Traffic Collisions
AU - Chen, Zisen
AU - James, Jonathan
N1 - No funders were acknowledged.
PY - 2022/12/31
Y1 - 2022/12/31
N2 - This paper examines the impact of a key source of wealth (the stock market) on road traffic collisions. Using data on over 2 million road accidents we do not find a linear relationship between stock prices and road crashes (fatal or otherwise) in Great Britain. However, we do find a V-shaped effect – collisions respond to the absolute change in stock market returns. The results are robust to a series of falsification exercises that potentially support a causal interpretation. We also examine another source of wealth that has not previously been examined – house prices. Similarly, we do not find that changes in monthly house prices have an impact on accidents, but a symmetric V-shaped is also shown for slight and serious accidents.
AB - This paper examines the impact of a key source of wealth (the stock market) on road traffic collisions. Using data on over 2 million road accidents we do not find a linear relationship between stock prices and road crashes (fatal or otherwise) in Great Britain. However, we do find a V-shaped effect – collisions respond to the absolute change in stock market returns. The results are robust to a series of falsification exercises that potentially support a causal interpretation. We also examine another source of wealth that has not previously been examined – house prices. Similarly, we do not find that changes in monthly house prices have an impact on accidents, but a symmetric V-shaped is also shown for slight and serious accidents.
UR - http://www.scopus.com/inward/record.url?scp=85141264607&partnerID=8YFLogxK
U2 - 10.1016/j.socscimed.2022.115488
DO - 10.1016/j.socscimed.2022.115488
M3 - Article
SN - 0277-9536
VL - 314
JO - Social Science and Medicine
JF - Social Science and Medicine
M1 - 115488
ER -