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Working Paper 2006-048C

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"Red Ink in the Rearview Mirror: Local Fiscal Conditions and the Issuance of Traffic Tickets"
by Thomas A. Garrett, and Gary A. Wagner

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.

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Category > Applied Microeconomics
Category > Regional Economics
Author > Thomas A. Garrett