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How Dangerous Are Drinking Drivers?

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Author Info
Steven D. Levitt
Jack Porter

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Abstract

We present a methodology for measuring the risks posed by drinking drivers that relies solely on readily available data on fatal crashes. The key to our identification strategy is a hidden richness inherent in two-car crashes. Drivers with alcohol in their blood are seven times more likely to cause a fatal crash; legally drunk drivers pose a risk 13 times greater than sober drivers. The externality per mile driven by a drunk driver is at least 30 cents. At current enforcement rates the punishment per arrest for drunk driving that internalizes this externality would be equivalent to a fine of $8,000.

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File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?JPE019605PDF
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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 109 (2001)
Issue (Month): 6 (December)
Pages: 1198-1237
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Handle: RePEc:ucp:jpolec:v:109:y:2001:i:6:p:1198-1237

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  1. Kolko, Jed, 2007. "Dialing While Fishtailing: How Mobile Phones, Hands-Free Laws, and Driving Conditions Interact to Affect Traffic Fatalities," MPRA Paper 4135, University Library of Munich, Germany. [Downloadable!]
  2. Ian Parry, 2003. "On the Costs of Excise Taxes and Income Taxes in the UK," Asia-Pacific Financial Markets, Springer, vol. 10(3), pages 281-304, May. [Downloadable!] (restricted)
    Other versions:
  3. Beth A. Freeborn & Brian McManus, 2007. "Substance Abuse Treatment and Motor Vehicle Fatalities," Working Papers 66, Department of Economics, College of William and Mary. [Downloadable!]
  4. Parry, Ian W.H. & Laxminarayan, Ramanan & West, Sarah E., 2006. "Fiscal and Externality Rationales for Alcohol Taxes," Discussion Papers dp-06-51, Resources For the Future. [Downloadable!]
  5. Antonio García-ferrer & Aránzazu De Juan & Pilar Poncela, 2007. "The relationship between road traffic accidents and real economic activity in Spain: common cycles and health issues," Health Economics, John Wiley & Sons, Ltd., vol. 16(6), pages 603-626. [Downloadable!]
  6. Hjalmarsson, Randi & Lindquist, Matthew, 2009. "Driving Under the Influence of Our Fathers," Research Papers in Economics 2009:16, Stockholm University, Department of Economics. [Downloadable!]
  7. Daniel Ortega & Francisco Rodríguez, 2005. "Trade Policy and Factor Prices: An Empirical Strategy," Wesleyan Economics Working Papers 2005-004, Wesleyan University, Department of Economics. [Downloadable!]
  8. Alma Cohen & Rajeev Dehejia, 2003. "The Effect of Automobile Insurance and Accident Liability Laws in Traffic Fatalities," NBER Working Papers 9602, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Neri, Marcelo Cortes, 2007. "The State of the Youth: Prisons, Drugs and Car Crashes," Economics Working Papers (Ensaios Economicos da EPGE) 661, Graduate School of Economics, Getulio Vargas Foundation (Brazil). [Downloadable!]
  10. Aaron Edlin & Pinar Karaca-Mandic, 2003. "The Accident Externality from Driving," Department of Economics, Working Paper Series 1058, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
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