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Public Choice And Urban Economics: The Unnoticed Link Between Liquor Licensing And Urban Sprawl

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  • W. Stanley Siebert

Abstract

The paper's hypothesis is that strict liquor licensing laws, as in Britain and the US, which ban street cafés (ostensibly to protect children) effectively transfer property rights in the streets to the commuting car users. Road pricing, either explicit or implicit via congested streets, loses its constituency. The result is road widening, neglect of city amenities and consequent urban sprawl. In line with the hypothesis, we find that continental European countries permitting street cafés and restaurants have less urban sprawl. They also attract more tourists, and their citizens are less obese. Therefore, the forthcoming Licensing Act, by (hopefully) assisting street cafés, marks an important step forward for British cities.

Suggested Citation

  • W. Stanley Siebert, 2003. "Public Choice And Urban Economics: The Unnoticed Link Between Liquor Licensing And Urban Sprawl," Economic Affairs, Wiley Blackwell, vol. 23(2), pages 22-27, June.
    • Handle: RePEc:bla:ecaffa:v:23:y:2003:i:2:p:22-27
    DOI: 10.1111/1468-0270.00411
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    References listed on IDEAS

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    1. Tore Langmyhr, 1999. "Understanding innovation: The case of road pricing," Transport Reviews, Taylor & Francis Journals, vol. 19(3), pages 255-271, January.
    2. Brueckner, Jan K. & Thisse, Jacques-Francois & Zenou, Yves, 1999. "Why is central Paris rich and downtown Detroit poor?: An amenity-based theory," European Economic Review, Elsevier, vol. 43(1), pages 91-107, January.
    3. Edward L. Glaeser & Matthew E. Kahn & Jordan Rappaport, 2000. "Why Do The Poor Live In Cities?," Harvard Institute of Economic Research Working Papers 1891, Harvard - Institute of Economic Research.
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