Question: 6. Do changes in traffic laws affect traffic fatalities? McCarthy (1994) contains an analysis of monthly time series data for the state of California. A

6. Do changes in traffic laws affect traffic fatalities? McCarthy (1994) contains an analysis of monthly time series data for the state of California. A set of dummy variables can be used to indicate the months in which certain laws were in effect. The file TRAFFIC2.RAW contains the data used by McCarthy. An alternative is to obtain a panel data set on states in the United States, where you can exploit variation in laws across states, as well as across time. (See the file TRAFFIC1.RAW.) Mullahy and Sindelar (1994) used individual-level data matched with state laws and taxes on alcohol to estimate the effects of laws and taxes on the probability of driving drunk.

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