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The Effectiveness of Vehicle Safety Inspections: An Analysis Using Panel Data

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  • David Merrell
  • Marc Poitras
  • Daniel Sutter

Abstract

We examined the effectiveness of state automobile safety inspections and present new evidence from a panel of the 50 states for the years 1981‐1993. Our approach incorporated several innovations over previous studies of safety inspections; most significantly, we estimated a fixed‐effects model that incorporated state‐specific shifts in casualty rates. We found no evidence that inspections significantly reduce fatality or injury rates. Our study also provides evidence on the effects of speed limits, seat belts, and Peltzman's offsetting behavior hypothesis.

Suggested Citation

  • David Merrell & Marc Poitras & Daniel Sutter, 1999. "The Effectiveness of Vehicle Safety Inspections: An Analysis Using Panel Data," Southern Economic Journal, John Wiley & Sons, vol. 65(3), pages 571-583, January.
    • Handle: RePEc:wly:soecon:v:65:y:1999:i:3:p:571-583
    DOI: 10.1002/j.2325-8012.1999.tb00177.x
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    References listed on IDEAS

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    1. Keeler, Theodore E, 1994. "Highway Safety, Economic Behavior, and Driving Environment," American Economic Review, American Economic Association, vol. 84(3), pages 684-693, June.
    2. Michener, Ron & Tighe, Carla, 1992. "A Poisson Regression Model of Highway Fatalities," American Economic Review, American Economic Association, vol. 82(2), pages 452-456, May.
    3. David Hemenway, 1989. "A failing grade for auto inspections-and motorists like it that way," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 8(2), pages 321-325.
    4. Thomas N. Hubbard, 1997. "Using Inspection And Maintenance Programs To Regulate Vehicle Emissions," Contemporary Economic Policy, Western Economic Association International, vol. 15(2), pages 52-62, April.
    5. Saffer, Henry & Grossman, Michael, 1987. "Drinking Age Laws and Highway Mortality Rates: Cause and Effect," Economic Inquiry, Western Economic Association International, vol. 25(3), pages 403-417, July.
    6. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
    7. Glazer, Amihai & Klein, Daniel B. & Lave, Charles, 1995. "Clean on Paper, Dirty on the Road: Troubles with California's Smog Check," University of California Transportation Center, Working Papers qt5514s0hg, University of California Transportation Center.
    8. Peltzman, Sam, 1975. "The Effects of Automobile Safety Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 677-725, August.
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    Cited by:

    1. Osmis Areda Habte & Håkan J. Holm, 2022. "Competition Makes Inspectors More Lenient: Evidence from the Motor Vehicle Inspection Market," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 61(1), pages 45-72, August.
    2. Olof Johansson-Stenman & Peter Martinsson, 2005. "Anyone for higher speed limits? – Self-interested and adaptive political preferences," Public Choice, Springer, vol. 122(3), pages 319-331, March.
    3. Đorđe Vranješ & Bojan Marić & Tihomir Đurić & Goran Jovanov & Jovica Vasiljević & Nemanja Jovanov & Dunja Radović Stojčić, 2022. "Model for Sustainable Evaluation of the Impact of the Total Number of Centers for Technical Inspections of Motor Vehicles on the Occurrence and Consequences of Traffic Accidents in an Area," Sustainability, MDPI, vol. 14(14), pages 1-13, July.

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