Wet Laws, Drinking Establishments, and Violent Crime

D. Mark Anderson (), Benjamin Crost and Daniel I. Rees ()
Additional contact information
D. Mark Anderson: Montana State University
Daniel I. Rees: Universidad Carlos III de Madrid

No 8718, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Drawing on county-level data from Kansas for the period 1977-2011, we examine whether plausibly exogenous increases in the number of establishments licensed to sell alcohol by the drink are related to violent crime. During this period, 86 out of 105 counties in Kansas voted to legalize the sale of alcohol to the general public for on-premises consumption. We provide evidence that these counties experienced substantial increases in the total number of establishments with on-premises liquor licenses (e.g., bars and restaurants). Using legalization as an instrument, we show that a 10 percent increase in drinking establishments is associated with a 4 percent increase in violent crime. Reduced-form estimates suggest that legalizing the sale of alcohol to the general public for on-premises consumption is associated with an 11 percent increase in violent crime.

Keywords: liquor licenses; alcohol; crime (search for similar items in EconPapers)
JEL-codes: H75 K42 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2014-12
New Economics Papers: this item is included in nep-law and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Economic Journal, 2018, 128 (611), 1333-1366

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Journal Article: Wet Laws, Drinking Establishments and Violent Crime (2018)
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