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The Multitude of Alehouses: The Effects of Alcohol Outlet Density on Highway Safety

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  • Tang Meng-Chi

    (Department of Economics, National Chung Cheng University, 168 University Road, Min-Hsiung, Chiayi, 62102, Taiwan)

Abstract

This article reports the use of detailed panel data on alcoholic beverage outlet licensing in Texas to determine the effects of alcohol outlet density on highway safety. After controlling for county heterogeneity, county and year fixed effects, and county-specific time trends, this study shows that alcohol outlet density decreases expected alcohol-related traffic accidents and arrests for driving under the influence (DUI). The negative correlation can be explained according to the reduced travel distance between alcohol outlets and home, but this distance effect does not appear when the number of off-premise alcohol outlets increases. The empirical results of this study show that the off-premise alcohol outlet density is negatively related to the number of expected accidents and DUI arrests. These results indicate that on-premise consumption decreases according to the number of available off-premise outlets. The results also indicate that this effect originates mainly from the off-premise outlets that sell alcoholic products with a relatively low alcohol content.

Suggested Citation

  • Tang Meng-Chi, 2013. "The Multitude of Alehouses: The Effects of Alcohol Outlet Density on Highway Safety," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(2), pages 1023-1050, August.
    • Handle: RePEc:bpj:bejeap:v:13:y:2013:i:2:p:1023-1050:n:11
    DOI: 10.1515/bejeap-2012-0051
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    References listed on IDEAS

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    1. Jackson, C. Kirabo & Owens, Emily Greene, 2011. "One for the road: Public transportation, alcohol consumption, and intoxicated driving," Journal of Public Economics, Elsevier, vol. 95(1), pages 106-121.
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    4. Sloan, Frank A. & Stout, Emily M. & Whetten-Goldstein, Kathryn & Liang, Lan, 2000. "Drinkers, Drivers, and Bartenders," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226762807, December.
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    More about this item

    Keywords

    alcohol licenses; alcohol outlet density; driving under the influence; traffic accidents;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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