Investigating the Effect of Human Development on the Shadow Price of Road Accidents in Iran

The purpose of this study is to evaluate human development and some economic factors affecting the shadow price of road accidents in Iran's economy. So this study analyzes this relationship in the form of econometric methods ARDL for (1992-2015) period. The results of this study suggest that the improvement in the level of human development reduces losses from accidents and consequently reduces the shadow price of road accidents. Also the results of this study suggest that it can be claimed that GDP and shadow price of road accidents and casualties associated with each other. This relationship shows that with economic growth, the shadow price of the road casualties' increase and after reaching a milestone, the price of shadow road casualties will reduce. In other words, this is the inverse U Kuznets curve relationship that is applied truly for Iran in relation to the shadow price of the road casualties and GDP. Another result obtained in this study, shows the negative relationship between the investment variable in transportation infrastructure with road casualties shadow prices and positive relationship between the numbers of vehicles with road casualties shadow price.