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The Market for New Handguns: An Empirical Investigation

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  • Bice, Douglas C
  • Hemley, David D

Abstract

Annual data from 1961-94 are used to estimate a supply and demand model for the new handgun market. The influence of price, income, expenditures on police protection, the violent crime rate, the Gun Control Act of 1968, and the Brady Handgun Violence Prevention Act of 1993 on the number of new handguns per capita is explored. The demand for handguns is elastic; a 1 percent increase in the price of handguns lowers the quantity demanded by 2-3 percent. Further, the demand for handguns is sensitive to the price of other firearms, such as shotguns, to per capita expenditures on law enforcement, and to the lagged violent crime rate. The demand for new handguns increased in the period preceding implementation of the Gun Control Act and the Brady Act. Finally, implementation of the Gun Control Act of 1968 does not appear to have significantly impacted the supply of new handguns. Copyright 2002 by the University of Chicago.

Suggested Citation

  • Bice, Douglas C & Hemley, David D, 2002. "The Market for New Handguns: An Empirical Investigation," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 251-265, April.
    • Handle: RePEc:ucp:jlawec:v:45:y:2002:i:1:p:251-65
    DOI: 10.1086/324656
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    References listed on IDEAS

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    1. Glaeser, Edward L & Glendon, Spencer, 1998. "Who Owns Guns? Criminals, Victims, and the Culture of Violence," American Economic Review, American Economic Association, vol. 88(2), pages 458-462, May.
    2. Donohue, John J, III & Levitt, Steven D, 1998. "Guns, Violence, and the Efficiency of Illegal Markets," American Economic Review, American Economic Association, vol. 88(2), pages 463-467, May.
    3. Dezhbakhsh, Hashem & Rubin, Paul H, 1998. "Lives Saved or Lives Lost? The Effects of Concealed-Handgun Laws on Crime," American Economic Review, American Economic Association, vol. 88(2), pages 468-474, May.
    4. Bronars, Stephen G & Lott, John R, Jr, 1998. "Criminal Deterrence, Geographic Spillovers, and the Right to Carry Concealed Handguns," American Economic Review, American Economic Association, vol. 88(2), pages 475-479, May.
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    Cited by:

    1. Anandasivam Gopal & Brad N Greenwood, 2017. "Traders, guns, and money: The effects of mass shootings on stock prices of firearm manufacturers in the U.S," PLOS ONE, Public Library of Science, vol. 12(5), pages 1-29, May.
    2. Wm. Alan Bartley & Geoffrey Fain Williams, 2022. "The role of gun supply in 1980s and 1990s youth violence," Contemporary Economic Policy, Western Economic Association International, vol. 40(2), pages 323-348, April.
    3. Kleck, Gary, 2015. "The Impact of Gun Ownership Rates on Crime Rates: A Methodological Review of the Evidence," Journal of Criminal Justice, Elsevier, vol. 43(1), pages 40-48.
    4. Schaffer, Mark & Kleck, Gary & Kovandzic, Tomislav, 2005. "Gun Prevalence, Homicide Rates and Causality: A GMM Approach to Endogeneity Bias," CEPR Discussion Papers 5357, C.E.P.R. Discussion Papers.
    5. Depetris-Chauvin, Emilio, 2015. "Fear of Obama: An empirical study of the demand for guns and the U.S. 2008 presidential election," Journal of Public Economics, Elsevier, vol. 130(C), pages 66-79.

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