In 1987, most states raised the speed limit from 55 to 65 mph on porti
ons of their rural interstate highways. There was intense debate about
the increase, and numerous evaluations were conducted afterwards. The
se evaluations share a common problem: they only measure the local eff
ects of the change. But the change must be judged by its system-wide e
ffects. In particular, the new 65 mph limit allowed the state highway
patrols to shift their resources from speed enforcement on the interst
ates to other safety activities and other highways-a shift many highwa
y patrol chiefs had argued for. If the chiefs were correct, the new al
location of patrol resources should lead to a reduction in statewide f
atality rates. Similarly, the chance to drive faster on the interstate
s should attract drivers away from other, more dangerous roads, again
generating system-wide consequences. This study measures these changes
and obtains surprising results. We find that the 65 mph limit reduced
statewide fatality rates by 3.4% to 5.1%, holding constant the effect
s of long-term trend, driving exposure, seat belt laws, and economic f
actors.