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Fines, Non-Payment, and Revenues: Evidence from Speeding Tickets

  • We estimate the effect of the level of fines on payment compliance and revenues collected from speeding tickets. Exploiting discontinuous increases in fines at speed cutoffs, we implement a regression discontinuity design. The results document small payment responses: a 10 percent increase in the fine (i.e. the payment obligation) induces a 1 percentage point decline in timely payments. The implied revenue elasticity is about 0.9. Expressed in absolute terms, a one euro increase in the fine translates into a roughly 60 cent increase in payments collected.

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Metadaten
Document Type:Working Paper
Language:English
Author(s):Christian Traxler, Libor Dušek
Publication year:2022
Publishing Institution:Hertie School
Number pages:29
DOI:https://doi.org/10.2139/ssrn.4281384
Release Date:2022/11/29
AY 22/23:AY 22/23
Licence of document (German):Metadaten / metadata
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