Do Auto Recalls Benefit the Public?

Abstract

The benefits of personal transportation in the United States come at significant costs to society. Reducing the costs, both in terms of lives and economics, should be the primary mission of transportation safety policy. One opportunity to do this involves vehicle safety recalls. In rare cases, recalls can save lives and reduce injuries. In many cases however, recalls just generate additional costs with little or no benefit.

Keywords: NHTSA, automotive recall, crashworthiness, FMVSS, Federal Motor Vehicle Safety Standards and Regulations, National Highway Traffic Safety Administration, National Traffic and Motor Vehicle Safety Act

JEL Classification: R48, R40, L50, L51, K13