This paper develops simple models of drivers’ speed selection behaviour both with and without the influence of speed limits using data from a section of rural road in Norway. The results indicate the importance of a number of personal characteristics on drivers’ speed selection behaviour, including age, driving experience, attitudes towards travel time savings, and perceptions of enforcement and penalties. Moral hazard effects may also be present.

A household makes a joint choice of type of vehicle(s) and rate of use. The authors’ model covers households with one, two, three, and four or more vehicles. It examines elasticities of fuel and other costs that vary with distance travelled, and the possibility of transfer to use of another vehicle within the household.

traffic deaths are reduced by inspection of motor vehicles, lower consumption of beer, and lower average speed. Raising the legal minimum drinking age is found to have no effect.