enright_frost - Team FrostRight Jeff Frost Idan Enright...

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Team FrostRight Jeff Frost Idan Enright Econ 140B Deschenes Econ 140B – Replication Exercise Michael Makowsky and Thomas Stratmann were curious as to what factors determine the price of a speeding ticket, let alone the probability of receiving a ticket. Of course, miles per hour over the posted speed limit is a strong factor in determining the price of a ticket. If one were to go 50 mph over the speed limit, the driver should obviously receive a speeding ticket along with a higher fine than a person who got cited for going 10 mph over the limit. But what other factors could exist in determining the price of a speeding ticket? Could driver demographics such as race, age, and gender affect how much a cited person pays for a ticket fine? How about the location of the cited driver? If the driver is a local resident in the town s/he got cited in, could that possibly yield a local discount for that guilty driver's fees? We're only scathing the surface with possible factors that could adversely or favorably affect the price of a speeding ticket. Makowsky and Stratmann hypothesized that officers act as, “agents of budget maximizing principals. .. [who] maximize their own utility” and will cite individuals based on the local government's fiscal situation, the driver's ability to vote in local elections and his/her opportunity cost in fighting a ticket in the event the driver is issued one. For example, a potential situation would be for a driver to pay a higher fine if the driver is pulled over in a town where the fiscal situation is poor, and the location of the town of incidence is far away from their place of residence. This maximizes both the fee revenue for the municipality and the utility of the citing officer by leading to a favorable work evaluation while not upsetting a local resident who is a potential voter. Ticketing an out of town driver minimizes the probability that the officer will have to go to court to defend the ticket as a driver has a higher
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This note was uploaded on 09/04/2011 for the course ECON 140b taught by Professor Staff during the Winter '08 term at UCSB.

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enright_frost - Team FrostRight Jeff Frost Idan Enright...

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