This study investigates the impact of beer taxes and a variety of alcohol-control policies on motor vehicle fatality rates, using fixed- effect models with data for the 48 contiguous states over the 1982 through 1988 time period. The econometric findings highlight the fragility of the parameter estimates to reasonable changes in model specifications. Special attention is paid to omitted variables biases resulting from failing to adequately control for grassroots efforts to reduce drunk driving, the enactment of other laws which simultaneously operate to reduce highway fatalities, and the economic conditions existing at the time of the legislation. In the preferred specifications, most of the regulations have little or no impact on traffic mortality. By contrast, higher beer taxes are associated with reductions in crash deaths and this result is relatively robust across specifications. These findings suggest the limited ability of further regulatory action to reduce drunk-driving but point to a potentially significant role for higher alcohol taxes.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
5195.
Length: Date of creation: Jul 1995 Date of revision: Handle: RePEc:nbr:nberwo:5195
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Find related papers by JEL classification: I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
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