Our Surprising Response to More Safety

When we feel protected, safety regulations can encourage the risky behavior and unintended consequences that they are trying to prevent.

Weekly Roundup: From Songwriters to the Superrich

Our weekly roundup includes how productivity affects music industry writers, the surprising impact of cheap oil and how tech shapes what the superrich earn.

How More Can Be Less With Safety Regulation

Safety regulation can have unintended consequences. Looking at antilock brakes, “too big to fail,” and Greek loans we see the Peltzman effect.

Weekly Roundup: From Raisin Reserves to Greek Bank Reserves

Our everyday economics includes inelasticity, supply, regulation, entitlements, subsidies, healthcare, innovation, price floor, monetary policy, euro zone.

An Unintended Consequence of Football Helmets

Regulation can have unintended consequences. With football helmets or seat belts or even financial regulation, protection can create more reckless behavior.

Unintended Consequences: Cholesterol, Cars and Unemployment

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. Knowing that seat…

The Cost of Seat Belts

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…