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

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  • Makowsky, Michael
  • Thomas, Stratmann

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, and that tickets issued to younger drivers have a larger effect in reducing accidents. The findings show that failure to control for endogeneity results in a significant underestimation of the positive impact of law enforcement on traffic safety.

Suggested Citation

  • Makowsky, Michael & Thomas, Stratmann, 2008. "More Tickets, Fewer Accidents: How Cash-Strapped Towns Make for Safer Roads," MPRA Paper 14360, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:14360
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    Cited by:

    1. Migchelbrink, Koen & Raymaekers, Pieter, 2023. "Nudging people to pay their parking fines on time. Evidence from a cluster-randomized field experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 105(C).
    2. Yahagi, Ken & Yamaguchi, Yohei, 2023. "Law enforcement with rent-seeking government under voting pressure," International Review of Law and Economics, Elsevier, vol. 73(C).
    3. Duncan, Kevin Davey, 2020. "Three papers in regional dynamics and panel econometrics," ISU General Staff Papers 202001010800009129, Iowa State University, Department of Economics.
    4. Bauernschuster, Stefan & Rekers, Ramona, 2022. "Speed limit enforcement and road safety," Journal of Public Economics, Elsevier, vol. 210(C).
    5. Bertoli, Paola & Grembi, Veronica, 2021. "The political cycle of road traffic accidents," Journal of Health Economics, Elsevier, vol. 76(C).
    6. Michael Makowsky & Thomas Stratmann, 2014. "Politics, unemployment, and the enforcement of immigration law," Public Choice, Springer, vol. 160(1), pages 131-153, July.
    7. Castillo-Manzano, José I. & Castro-Nuño, Mercedes & López-Valpuesta, Lourdes & Pedregal, Diego J., 2019. "From legislation to compliance: The power of traffic law enforcement for the case study of Spain," Transport Policy, Elsevier, vol. 75(C), pages 1-9.
    8. 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.
    9. Mungan, Murat C., 2023. "False proxies for enforcement distortions in “policing for profit” research," Economics Letters, Elsevier, vol. 230(C).
    10. Wolfgang Eggert & Steffen Minter & Maximilian Stephan & Handirk Ungern-Sternberg, 2017. "Sanctions for repeat offenders: a question of wealth?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(5), pages 467-482, November.
    11. Georges Dionne & Ying Liu, 2021. "Effects of Insurance Incentives on Road Safety: Evidence from a Natural Experiment in China," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(2), pages 453-477, April.
    12. Anna Harvey, 2020. "Applying regression discontinuity designs to American political development," Public Choice, Springer, vol. 185(3), pages 377-399, December.
    13. Pradhi Aggarwal & Alec Brandon & Ariel Goldszmidt & Justin Holz & John List & Ian Muir & Gregory Sun & Thomas Yu, 2022. "High-frequency location data shows that race affects the likelihood of being stopped and fined for speeding," Natural Field Experiments 00764, The Field Experiments Website.
    14. DeAngelo Gregory J. & Ross Amanda & Gittings R. Kaj, 2018. "Police Incentives, Policy Spillovers, and the Enforcement of Drug Crimes," Review of Law & Economics, De Gruyter, vol. 14(1), pages 1-29, March.
    15. Evan M. Calford & Gregory DeAngelo, 2023. "Ambiguity and enforcement," Experimental Economics, Springer;Economic Science Association, vol. 26(2), pages 304-338, April.
    16. Foster Kamanga & Virginia Smercina & Barbara G. Brents & Daniel Okamura & Vincent Fuentes, 2021. "Costs and Consequences of Traffic Fines and Fees: A Case Study of Open Warrants in Las Vegas, Nevada," Social Sciences, MDPI, vol. 10(11), pages 1-25, November.
    17. Gregory DeAngelo & R. Kaj Gittings & Amanda Ross & Annie Walker, 2016. "Police Bias in the Enforcement of Drug Crimes: Evidence from Low Priority Laws," Working Papers 16-01, Department of Economics, West Virginia University.
    18. Molitor, Ramona, 2017. "Publicly announced speed limit enforcement and its impact on road safety: Evidence from the German Blitzmarathons," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-75-17, University of Passau, Faculty of Business and Economics.
    19. 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.
    20. Boylan, Richard T., 2022. "Should cities disband their police departments?," Journal of Urban Economics, Elsevier, vol. 130(C).
    21. 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.
    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.
    23. Federico Masera, 2022. "The economics of policing and crimeThe economics of policing and crime," Chapters, in: Paolo Buonanno & Paolo Vanin & Juan Vargas (ed.), A Modern Guide to the Economics of Crime, chapter 2, pages 12-29, Edward Elgar Publishing.

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    More about this item

    Keywords

    accidents; safety; law enforcement; simultaneity;
    All these keywords.

    JEL classification:

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

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