Red ink in the rearview mirror : local fiscal conditions and the issuance of traffic tickets.

Auteur(s)
Garrett, T.A. & Wagner, G.A.
Jaar
Samenvatting

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. This revenue motive was empirically tested using a panel of annual data for North Carolina counties from 1990 to 2003. It was found 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. Elasticity estimates reveal that a ten percent decrease in negative revenue growth results in a 6.4 percent increase in the growth rate of traffic tickets. The results suggest that tickets are used as a revenue generation tool rather than solely a means to increase public safety. (Author/publisher)

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Publicatie

Bibliotheeknummer
20090743 ST [electronic version only]
Uitgave

St. Louis, MO, Federal Reserve Bank of St.Louis, Research Division, 2007, 28 p., ref.; Working Paper Series ; 2006-048C

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