| 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. |
