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Policy Ineffectiveness or Offsetting Behavior? An Analysis of Vehicle Safety Inspections

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  • Marc Poitras

    (Department of Economics, University of Dayton)

  • Daniel Sutter

    (Department of Economics, University of Oklahoma)

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    Abstract

    Over 60 million registered motor vehicles in 20 states are subject to mandatory periodic safety inspection. The effect of safety inspection on roadway casualties has been estimated by several studies, with mixed results. We present a unique test of inspection effectiveness by analyzing the policy's impact on old cars in use and on repair industry revenue. Our results indicate that inspection has no significant impact on old cars or repair industry revenue, which implies that inspection does not improve the mechanical condition of vehicles. Unlike studies that examine casualties, our tests allow us to distinguish between policy ineffectiveness and Peltzman-type offsetting behavior as sources of inspection failure.

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    Bibliographic Info

    Article provided by Southern Economic Association in its journal Southern Economic Journal.

    Volume (Year): 68 (2002)
    Issue (Month): 4 (April)
    Pages: 922-934

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    Handle: RePEc:sej:ancoec:v:68:4:y:2002:p:922-934

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    Web page: http://www.southerneconomic.org/
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    Cited by:
    1. Maria De Paola & Vincenzo Scoppa & Mariatiziana Falcone, 2010. "The Deterrent Effects of Penalty Point System in Driving Licenses: A Regression Discontinuity Approach," Working Papers 201004, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
    2. Maria De Paola & Vincenzo Scoppa & Mariatiziana Falcone, 2013. "The deterrent effects of the penalty points system for driving offences: a regression discontinuity approach," Empirical Economics, Springer, vol. 45(2), pages 965-985, October.
    3. Obeng, Kofi & Burkey, Mark, 2008. "Explaining crashes at intersections with red light cameras: A note," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(5), pages 811-817, June.

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