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More Tickets, Fewer Accidents: How Cash-Strapped Towns Make for Safer Roads

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Author Info
Michael D. Makowsky () (Department of Economics, Towson University)
Thomas Stratmann () (Department of Economics, George Mason University)

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Abstract

Traffic accidents are one of the leading causes of injury and death in the U.S. The role of traffic law enforcement in the reduction of accidents has been studied by relatively few papers and with mixed results that may be due to a simultaneity problem. Traffic law enforcement may reduce accidents, but police are also likely to be stricter in accident- prone areas. We use municipal budgetary shortfalls as an instrumental variable to identify the effect of traffic citations on traffic safety and show that budgetary shortfalls lead to more frequent issuance of tickets to drivers. Using a panel of municipalities in Massachusetts, we show that increases in the number of tickets written reduce motor vehicle accidents and accident related injuries. The findings show that failure to control for endogeneity results in a significant underestimation of the positive impact of law enforcement on traffic safety.

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File URL: http://www.towson.edu/econ/workingpapers/2009-02.pdf
File Format: application/pdf
File Function: First version, 2009
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Publisher Info
Paper provided by Towson University, Department of Economics in its series Working Papers with number 2009-02.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 37 pages
Date of creation: Jun 2009
Date of revision: Jun 2009
Handle: RePEc:tow:wpaper:2009-02

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Postal: Towson, Maryland 21252-0001
Phone: 410-704-2959
Fax: 410-704-3424
Web page: http://www.towson.edu/econ/
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Related research
Keywords: traffic accidents; safety; law enforcement; simultaneity.;

Other versions of this item:

Find related papers by JEL classification:
K32 - Law and Economics - - Other Substantive Areas of Law - - - Environmental, Health, and Safety Law
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data

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References listed on IDEAS
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    Other versions:
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    Other versions:
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  14. David Merrell & Marc Poitras & Daniel Sutter, 1999. "The Effectiveness of Vehicle Safety Inspections: An Analysis Using Panel Data," Southern Economic Journal, Southern Economic Association, vol. 65(3), pages 571-583, January.
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