Economic studies using aggregate data generally find that higher taxes are the most effective policy to reduce drunk driving while criminologists report strong evidence supporting law enforcement measures in policy evaluations. This paper evaluates these differing perspectives using the aggregate data that is typically used in the economic literature. OLS and fixed effects models show that police can affect the probability of arrest for drunk driving and, in combination with evidence from DUI deterrence experiments, this suggests that the failure of economic models to detect deterrence reflects the lack of systematic and sustained police efforts against DUI.
In this study, we use county data on private security establishments and employment for 1977-92 to test two hypotheses. First, we test whether private security deters crime. Second, we test whether John Lott and David Mustard's estimates of the impact of shall-issue laws on crime are biased because of a lack of controls for private security. We find little evidence that private security reduces the crime rates for assault or larceny. Some estimates suggest murder, robbery, and/or auto theft may be deterred by private security, although these results are not robust. Of all the index crime categories, only rape is estimated to have a consistent negative relationship with private security. In addition, we find little evidence that the Lott and Mustard results are biased because of a lack of controls for the private security measures employed in this study.
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