Thursday, December 11, 2008

Unintended Consequences

Economics professors love to make themselves look smart and policy makers look stupid. Hence, we love the Law of Unintended Consequences. This article provides a great overview of the law and examples. Below is a new example I found from the Journal of Public Economics.

U.S. counties which enacted smoking bans has experienced a 13% increase in fatal alcohol-related car accidents, as smokers drove further to find a bar that allows them to smoke. Which would you rather experience, second-hand smoke or a car accident?

Blog Archive