Citation

Levitt SD, Porter J. J. Polit. Econ. 2001; 109(6): 1198-1237.

Copyright

(Copyright © 2001, University of Chicago Press)

DOI

10.1086/323281

PMID

unavailable

Abstract

We present a methodology for measuring the risks posed by drinking drivers that relies solely on readily available data on fatal crashes. The key to our identification strategy is a hidden richness inherent in two‐car crashes. Drivers with alcohol in their blood are seven times more likely to cause a fatal crash; legally drunk drivers pose a risk 13 times greater than sober drivers. The externality per mile driven by a drunk driver is at least 30 cents. At current enforcement rates the punishment per arrest for drunk driving that internalizes this externality would be equivalent to a fine of $8,000.