State vs Consumer Regulation: An Evaluation of Two Road Safety Interventions in Kenya / James Habyarimana, William Jack.

Format:

Book

Author/Creator:

Habyarimana, James.

Contributor:

National Bureau of Economic Research.

Jack, William.

Series:

Working Paper Series (National Bureau of Economic Research) no. w18378.

NBER working paper series no. w18378

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2012.

Summary:

This paper compares the relative impact of two road safety interventions in the Kenyan minibus or matatu sector: a top down set of regulatory requirements known as the Michuki Rules and a consumer empowerment intervention. We use very detailed insurance claims data on three classes of vehicles to implement a difference-in-differences estimation strategy to measure the impact of the Michuki Rules. Despite strong political leadership and dedicated resources, we find no statistically significant effect of the Michuki Rules on accident rates. In contrast, the consumer empowerment intervention that didn't rely on third party enforcement has very large and significant effects on accident rates. Our intent-to-treat estimates suggest reductions in accident rates of at least 50%. Our analysis suggests that in institutionally weak environments, innovative consumer-driven solutions might provide an alternative solution to low quality service provision.

Notes:

Print version record

September 2012.