Abstract

http://ssrn.com/abstract=923158
 


 



Are Traffic Tickets Countercyclical?


Thomas A. Garrett


Federal Reserve Bank of St. Louis - Research Division

Gary Wagner


University of Arkansas at Little Rock

August 2006

Federal Reserve Bank of St. Louis Working Paper No. 2006-048A

Abstract:     
There is anecdotal evidence that local governments use traffic tickets to generate revenue. Using panel data for North Carolina counties, we examine whether changes in local government revenue influence the number of traffic tickets issued. We find strong evidence of an asymmetric response by local governments. Specifically, positive changes in revenue have no effect on traffic tickets, but negative revenue changes increase the number of traffic tickets issued. A one percentage point decrease in revenue yields a 0.38 percentage point increase in traffic tickets. We calculate that traffic ticket revenue supplements a low percentage of local revenue losses.

Number of Pages in PDF File: 22

Keywords: traffic tickets, revenue smoothing, local governments

JEL Classification: H72, D72

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Date posted: August 9, 2006  

Suggested Citation

Garrett, Thomas A. and Wagner, Gary, Are Traffic Tickets Countercyclical? (August 2006). Federal Reserve Bank of St. Louis Working Paper No. 2006-048A. Available at SSRN: http://ssrn.com/abstract=923158 or http://dx.doi.org/10.2139/ssrn.923158

Contact Information

Thomas A. Garrett (Contact Author)
Federal Reserve Bank of St. Louis - Research Division ( email )
411 Locust St
Saint Louis, MO 63011
United States
Gary Wagner
University of Arkansas at Little Rock ( email )
Little Rock, AK 72201
United States
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