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How do US state firearms laws affect firearms manufacturing location? An empirical investigation, 1986–2010

Author

Listed:
  • Jurgen Brauer
  • Daniel Montolio
  • Elisa Trujillo-Baute

Abstract

We exploit variations in US state firearms laws to study their relation to the spatial distribution of more than 2700 federally licensed manufacturers of firearms for the civilian and law enforcement markets across the country. Accounting for a variety of economic factors—such as cost, tax burden and agglomeration effects—we find that states with relatively permissive, end-user friendly laws host more firearms manufacturing establishments than do states with relatively restrictive, end-user unfriendly laws. This supply side-oriented paper complements a literature that predominantly attends to the market’s demand side. It thus opens up a new avenue to study the US civilian firearms market.

Suggested Citation

  • Jurgen Brauer & Daniel Montolio & Elisa Trujillo-Baute, 2017. "How do US state firearms laws affect firearms manufacturing location? An empirical investigation, 1986–2010," Journal of Economic Geography, Oxford University Press, vol. 17(4), pages 753-790.
    • Handle: RePEc:oup:jecgeo:v:17:y:2017:i:4:p:753-790.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbw016
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    References listed on IDEAS

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    1. Steven P. Lanza, 2013. "Targeting Gun Violence: Can We Reduce Gun Deaths and Lot Lose Jobs?," The Connecticut Economy, University of Connecticut, Department of Economics, issue Summer.
    2. Rosenberg, Nathan, 1963. "Technological Change in the Machine Tool Industry, 1840–1910," The Journal of Economic History, Cambridge University Press, vol. 23(4), pages 414-443, December.
    3. Brian Knight, 2013. "State Gun Policy and Cross-State Externalities: Evidence from Crime Gun Tracing," American Economic Journal: Economic Policy, American Economic Association, vol. 5(4), pages 200-229, November.
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    5. Leo H. Kahane, 2013. "Understanding The Interstate Export Of Crime Guns: A Gravity Model Approach," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 618-634, July.
    6. Topher L. McDougal & David A. Shirk & Robert Muggah & John H. Patterson, 2015. "The Way of the Gun: Estimating Firearms Trafficking across the US–Mexico Border," Journal of Economic Geography, Oxford University Press, vol. 15(2), pages 297-327.
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    More about this item

    Keywords

    USA; state firearms laws; firearms manufacturing;
    All these keywords.

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L64 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Machinery; Business Equipment; Armaments
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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