Public festivities, crime and health: Evidence from Germany (with Katharina Drescher and Seraphin Schwarzbauer)
Abstract: Collective celebrations are a universal feature of social life, yet their social costs remain poorly understood. We provide systematic evidence on the effects of public festivities on crime and health using novel data on the near-universe of German folk festivals linked to administrative records on crime, road accidents, and hospitalizations. Exploiting variation in festival timing and location across municipalities, we find that crimes increase by 17 percent on festival days, with effects of up to 51 percent for violent crimes. We provide evidence consistent with alcohol consumption as a key mechanism. A back-of-the-envelope calculation suggests that crime-related externalities alone amount to roughly EUR 146 million per year in our study region, raising questions about the allocation of public resources and the financing of public safety expenditures.