This paper presents empirical evidence that an individual's decision t
o drive while drunk is negatively affected by the expected full price
of driving drunk. The analysis usa a unique data set containing inform
ation on self-reported drunk driving matched to state-level drunk driv
ing policies as well as to state excise taxes on beer. These are hypot
hesized and found to affect drunk driving. Further, we find interestin
g racial differences but surprisingly small differences by gender in t
he effect of socioeconomic and policy variables on drunk driving prope
nsities.