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Reducing informational asymmetry impacts choices and improves safety : An evaluation of automobile crash tests

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<title>Reducing informational asymmetry impacts choices and improves safety</title>
<subTitle>: An evaluation of automobile crash tests</subTitle>
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<namePart>Sheehan-Connor, Damien</namePart>
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<abstract displayLabel="Summary">Vehicle crash tests mitigate an informational market failure and provide substantial benefits to consumers. Consumers cannot accurately assess vehicle safety leading automakers to provide it suboptimally. Crash tests performed by the Insurance Institute for Highway Safety represent an attempt to mitigate this market failure. This paper presents evidence that automakers responded by producing safer vehicles and that consumers increased purchases of highly rated vehicles. A novel identification strategy using the year of vehicle redesign is used to evaluate the tests' safety impact. A lower-bound estimate of program benefits is $3000 per vehicle resulting in an annual reduction of 1650 fatalities.

</abstract>
<note type="statement of responsibility">Damien Sheehan-Connor</note>
<subject xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="MAPA20080603779">
<topic>Seguro de automóviles</topic>
</subject>
<subject xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="MAPA20080539948">
<topic>Tests</topic>
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<subject xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="MAPA20080570569">
<topic>Seguridad vial</topic>
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<classification authority="">322</classification>
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<title>The Journal of risk and insurance</title>
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<publisher>Nueva York : The American Risk and Insurance Association, 1964-</publisher>
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<identifier type="issn">0022-4367</identifier>
<identifier type="local">MAP20077000727</identifier>
<part>
<text>05/09/2022 Volumen 89 Número 3 - septiembre 2022 , p. 697-723</text>
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