Red Ink in the Rearview Mirror: Local Fiscal Conditions and the Issuance of Traffic Tickets
Thomas A. Garrett
Federal Reserve Bank of St. Louis - Research Division
University of Arkansas at Little Rock
FRB of St. Louis Working Paper No. 2006-048B
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.
Keywords: traffic tickets, public safety, political interest, law enforcement
JEL Classification: H72, D72
Date posted: November 29, 2006
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