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2006•RePEc: Research Papers in EconomicsRequires access

Automobile Safety Inspections and Enforcing Norms: Case Study of Japan Using Panel Data

Eiji Yamamura

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Abstract

This paper explores, using panel data of Japan, whether automobile inspections help to reduce accidents. Two innovations introduced by this paper are the control of endogeneity by the 2sls fixed effects model and the taking into account of norm enforcement in order to control the omitted variable bias. We found through this estimation that automobile inspections and the enforcing of social norms play a critical role in reducing fatalities but not non-fatal accidents.

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What this paper is about

This paper explores, using panel data of Japan, whether automobile inspections help to reduce accidents. Two innovations introduced by this paper are the control of endogeneity by the 2sls fixed effects model and the taking into account of norm enforcement in order to control the omitted variable bias. We found through this estimation that automobile inspections and the enforcing of social norms play a critical role in reducing fatalities but not non-fatal accidents.

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Available abstract

This paper explores, using panel data of Japan, whether automobile inspections help to reduce accidents. Two innovations introduced by this paper are the control of endogeneity by the 2sls fixed effects model and the taking into account of norm enforcement in order to control the omitted variable bias. We found through this estimation that automobile inspections and the enforcing of social norms play a critical role in reducing fatalities but not non-fatal accidents.

Key concepts: Endogeneity, Panel data, Enforcement, Estimation, Panel analysis, Control (management), Business, Instrumental variable

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