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Red ink in the rearview mirror: local fiscal conditions and the issuance of traffic tickets

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  • Thomas A. Garrett
  • Gary A. Wagner

Abstract

Municipalities have revenue motives for enforcing traffic laws in addition to public safety motives because many traffic offenses are punished via fines and the issuing municipality often retains the revenue. Anecdotal evidence supports this revenue motive. We empirically test this revenue motive using panel data on North Carolina counties. We find that significantly more tickets are issued in the year following a decline in revenue, but the issuance of traffic tickets does not decline in years following revenue increases. Our results suggest that tickets are used as a revenue generation tool rather than solely a means to increase public safety. ; Formerly titled: Are traffic tickets countercyclical?

Suggested Citation

  • Thomas A. Garrett & Gary A. Wagner, 2007. "Red ink in the rearview mirror: local fiscal conditions and the issuance of traffic tickets," Working Papers 2006-048, Federal Reserve Bank of St. Louis.
    • Handle: RePEc:fip:fedlwp:2006-048
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    1. Sarah Marx Quintanar, 2017. "Man vs. machine: An investigation of speeding ticket disparities based on gender and race," Journal of Applied Economics, Universidad del CEMA, vol. 20, pages 1-28, May.
    2. Michael D. Makowsky & Thomas Stratmann, 2011. "More Tickets, Fewer Accidents: How Cash-Strapped Towns Make for Safer Roads," Journal of Law and Economics, University of Chicago Press, vol. 54(4), pages 863-888.
    3. Matt E. Ryan, 2020. "The heat: temperature, police behavior and the enforcement of law," European Journal of Law and Economics, Springer, vol. 49(2), pages 187-203, April.
    4. Bertoli, Paola & Grembi, Veronica, 2021. "The political cycle of road traffic accidents," Journal of Health Economics, Elsevier, vol. 76(C).
    5. Yahagi, Ken, 2021. "Law enforcement with motivated agents," International Review of Law and Economics, Elsevier, vol. 66(C).
    6. Zhiyong (John) Liu & Zhewei Wang & Zhendong Yin, 2022. "When is duplication of effort a good thing in law enforcement?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(4), pages 682-708, August.
    7. Manville, Michael & Pinski, Miriam, 2021. "The causes and consequences of curb parking management," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 295-307.
    8. Makofske, Matthew, 2020. "Pretextual Traffic Stops and Racial Disparities in their Use," MPRA Paper 121003, University Library of Munich, Germany, revised 29 Jul 2023.
    9. Florian Baumann & Sophie Bienenstock & Tim Friehe & Maiva Ropaul, 2023. "Fines as enforcers’ rewards or as a transfer to society at large? Evidence on deterrence and enforcement implications," Public Choice, Springer, vol. 196(3), pages 229-255, September.
    10. Mungan, Murat C., 2023. "False proxies for enforcement distortions in “policing for profit” research," Economics Letters, Elsevier, vol. 230(C).
    11. Makowsky, Michael & Sanders, Shane, 2013. "Political costs and fiscal benefits: The political economy of residential property value assessment under Proposition 212," Economics Letters, Elsevier, vol. 120(3), pages 359-363.
    12. Siân Mughan, 2021. "Municipal reliance on fine and fee revenues: How local courts contribute to extractive revenue practices in US cities," Public Budgeting & Finance, Wiley Blackwell, vol. 41(2), pages 22-44, June.
    13. Chris Mothorpe & W. William Woolsey & Russell S. Sobel, 2021. "Do political motivations and strategic considerations influence municipal annexation patterns?," Public Choice, Springer, vol. 188(3), pages 385-405, September.
    14. Bracco, Emanuele, 2018. "A fine collection: The political budget cycle of traffic enforcement," Economics Letters, Elsevier, vol. 164(C), pages 117-120.
    15. Losak, Shannon R. & Makowsky, Michael D., 2024. "Lame duck law enforcement," Economics Letters, Elsevier, vol. 238(C).
    16. Makofske, Matthew, 2020. "Pretextual Traffic Stops and Racial Disparities in their Use," MPRA Paper 100792, University Library of Munich, Germany.
    17. Kibrom A. Abay, 2018. "How Effective Are Non‐Monetary Instruments for Safe Driving? Panel Data Evidence on the Effect of the Demerit Point System in Denmark," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(3), pages 894-924, July.
    18. Cheng, Cheng & Long, Wei, 2022. "The effect of highly publicized police killings on policing: Evidence from large U.S. cities," Journal of Public Economics, Elsevier, vol. 206(C).
    19. Shawn Kantor & Carl T. Kitchens & Steven Pawlowski, 2021. "Civil Asset Forfeiture, Crime, And Police Incentives: Evidence From The Comprehensive Crime Control Act Of 1984," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 217-242, January.
    20. Siân Mughan & Joanna Carroll, 2021. "Escaping the long arm of the law? Racial disparities in the effect of drivers' license suspensions on offense probabilities," Southern Economic Journal, John Wiley & Sons, vol. 87(4), pages 1366-1389, April.
    21. Roach Michael, 2015. "Is the Highway Patrol Really Tougher on Out-of-State Drivers? An Empirical Analysis," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(2), pages 769-796, April.
    22. Gila Albert & Dimitry Bukchin & Tomer Toledo, 2021. "Evaluation of a Public Technology-Based Traffic Enforcement Program," Sustainability, MDPI, vol. 13(21), pages 1-13, October.

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