Highlights there are two types of vehicle safety inspection programs annual check-ups spot checks of vehicles taken out of traffic evidence indicates that these mandatory inspections do not improve safety interest group lobbying is a better explanation for why mandatory inspection programs exist The authors examine the effectiveness and political determinants of state automobile safety inspections.
Safety inspections attempt to ensure all vehicles on the road meet a specified maintenance standard.
A poorly maintained car increases the probability of an accident, some of the costs of which are borne by persons other than the car owner. Previous studies, find mixed evidence of the effectiveness of inspections. Although mandating inspections might raise social welfare, public interest alone provides a weak theory of regulation. The report presents new evidence on the effect of inspection laws on the fatality rate. The costs of inspection cannot be justified on public interest grounds if inspections do not improve safety.