Wednesday, January 07, 2009

Study finds another reason to hate recession: More tickets

The economist got a speeding ticket, and it got him thinking about why.

Thomas A. Garrett, an assistant vice president at the St. Louis Federal Reserve, knew he deserved to be ticketed while on vacation in Pennsylvania a few years ago. But, he wondered, are traffic tickets purely about public safety? Or are other factors at play? Many motorists probably have wondered the same thing sitting on a highway shoulder waiting for a citation. But Garrett turned it into a scholarly pursuit. He decided to conduct a study.

What Garrett and a co-author discovered provides yet another reason to hate a recession.

Traffic tickets go up significantly when local government revenue falls, they found. Their study showed for the first time evidence of how “local governments behave, in part, as though traffic tickets are a revenue tool to help offset periods of fiscal distress.”

No comments:

Post a Comment