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State Gun Policy and Cross-State Externalities: Evidence from Crime Gun Tracing

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  • Brian Knight

Abstract

This paper provides a theoretical and empirical analysis of crossstate externalities associated with gun regulations that impact gun trafficking. Using tracing data, which identify the source state for crime guns recovered in destination states, we find that firearms tend to flow from states with weak laws to states with strict laws, satisfying a key theoretical condition for the existence of externalities. We also find that gun flows are more significant between nearby states, suggesting that externalities are spatial in nature. Finally, we present evidence that criminal possession of guns is higher in states exposed to weak laws in nearby states.

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Journal: Economic Policy.

Volume (Year): 5 (2013)
Issue (Month): 4 (November)
Pages: 200-229

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Handle: RePEc:aea:aejpol:v:5:y:2013:i:4:p:200-229

Note: DOI: 10.1257/pol.5.4.200
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  1. Mark Duggan & Randi Hjalmarsson & Brian A. Jacob, 2011. "The Short-Term and Localized Effect of Gun Shows: Evidence from California and Texas," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 786-799, August.
  2. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September.
  3. Philip J. Cook & Jens Ludwig & Sudhir Venkatesh & Anthony A. Braga, 2005. "Underground Gun Markets," NBER Working Papers 11737, National Bureau of Economic Research, Inc.
  4. Brian Knight & Nathan Schiff, 2012. "Spatial Competition and Cross-Border Shopping: Evidence from State Lotteries," American Economic Journal: Economic Policy, American Economic Association, vol. 4(4), pages 199-229, November.
  5. Lott, John R, Jr & Mustard, David B, 1997. "Crime, Deterrence, and Right-to-Carry Concealed Handguns," The Journal of Legal Studies, University of Chicago Press, vol. 26(1), pages 1-68, January.
  6. Lovenheim, Michael F., 2008. "How Far to the Border?: The Extent and Impact of Cross-Border Casual Cigarette Smuggling," National Tax Journal, National Tax Association, vol. 61(1), pages 7-33, March.
  7. Black, Dan A & Nagin, Daniel S, 1998. "Do Right-to-Carry Laws Deter Violent Crime?," The Journal of Legal Studies, University of Chicago Press, vol. 27(1), pages 209-19, January.
  8. Mark Duggan, 2000. "More Guns, More Crime," NBER Working Papers 7967, National Bureau of Economic Research, Inc.
  9. James E. Anderson, 2011. "The Gravity Model," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 133-160, 09.
  10. Stefano DellaVigna & Eliana La Ferrara, 2010. "Detecting Illegal Arms Trade," American Economic Journal: Economic Policy, American Economic Association, vol. 2(4), pages 26-57, November.
  11. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
  12. David Merriman, 2010. "The Micro-geography of Tax Avoidance: Evidence from Littered Cigarette Packs in Chicago," American Economic Journal: Economic Policy, American Economic Association, vol. 2(2), pages 61-84, May.
  13. Burruss, George W. & Decker, Scott H., 2002. "Gun violence and police problem solving: A research note examining alternative data sources," Journal of Criminal Justice, Elsevier, vol. 30(6), pages 567-574.
  14. Koleman S. Strumpf & Felix Oberholzer-Gee, 2002. "Endogenous Policy Decentralization: Testing the Central Tenet of Economic Federalism," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 1-36, February.
  15. Ayres, Ian & Donohue, John J, III, 1999. "Nondiscretionary Concealed Weapons Laws: A Case Study of Statistics, Standards of Proof, and Public Policy [Review Article]," American Law and Economics Review, Oxford University Press, vol. 1(1-2), pages 436-70, Fall.
  16. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
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Cited by:
  1. Alesina, Alberto & Passarelli, Francesco, 2014. "Regulation versus taxation," Journal of Public Economics, Elsevier, vol. 110(C), pages 147-156.
  2. Laurent Bouton & Paola Conconi & Francisco Pino & Maurizio Zanardi, 2013. "Guns and Votes," Working Papers ECARES ECARES 2013-39, ULB -- Universite Libre de Bruxelles.
    • Laurent Bouton & Paola Conconi & Francisco Pino & Maurizio Zanardi, 2013. "Guns and votes," Working Papers 43819146, Lancaster University Management School, Economics Department.
    • Bouton, Laurent & Conconi, Paola & Pino, Francisco & Zanardi, Maurizio, 2013. "Guns and Votes," CEPR Discussion Papers 9726, C.E.P.R. Discussion Papers.
    • Laurent Bouton & Paola Conconi & Francisco Pino & Maurizio Zanardi, 2014. "Guns and Votes," NBER Working Papers 20253, National Bureau of Economic Research, Inc.
  3. Jurgen Brauer & Daniel Montolio & Elisa Trujillo, 2014. "Do U.S. State Firearms Laws Affect Firearms Manufacturing Location?," SADO - Working Papers 20, Small Arms Data Observatory.
  4. Emilio Guterriez & Ruben Durante, 2013. "Fighting Crime with a Little Help from my Friends: Party Affiliation, Inter‐jurisdictional Cooperation and Crime in Mexico," Sciences Po publications 17, Sciences Po.
  5. repec:spo:wpecon:info:hdl:2441/6ggbvnr6munghes9oaso1e0k4 is not listed on IDEAS

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