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February 2, 2026Management Decision

Drunk driving policy and urban entrepreneurship: a difference-in-differences approach

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Authors

HJHao JiaoWLWanrong LiJLJintao Lu

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Overview

Analysis reveals drunk driving regulations affect urban entrepreneurship, indicating policy implications for local governance.

Key Points

  • This research investigates the relationship between drunk driving policy enforcement and urban entrepreneurship.
  • Utilized a natural experiment from staggered drunk driving policy enforcement.
  • Employed a difference-in-differences (DID) model to assess entrepreneurial effects.
  • Analyzed variations in policy impact across regions with different car ownership and financial performance levels.
  • Balanced drunk driving policies positively influence urban entrepreneurial activities.
  • Stronger effects observed in areas with more private cars and poorer financial development.
  • Findings indicate an increase in venture capital firms and population density following balanced policy implementation.

Cite This Study

Jiao et al. (2026) studied this question.

synapsesocial.com/papers/6980ff08c1c9540dea811ae8https://doi.org/10.1108/md-04-2025-0870
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