Slippery When Wet: The Effects of Local Alcohol Access Laws on Highway Safety

Abstract

Using detailed panel data on local alcohol policy changes in Texas, this paper tests whether the effect of these changes on alcohol-related accidents depends on whether the policy change involves where the alcohol is consumed and the type of alcohol consumed. After controlling for both county and year fixed effects, we find evidence that: (i) the sale of beer and wine may actually decrease expected accidents; and (ii) the sale of higher alcohol-content liquor may present greater risk to highway safety than the sale of just beer and wine.

Keywords: alcohol, drunk driving, endogenous policy, prohibition

JEL Classification: I10, I18, R50