Time, speeding behavior, and optimal penalties

In this paper, I develop a model of individual drivers’ speeding behavior and use it to recommend optimal penalties, in terms of both monetary fines and time-based punishment, paying particular attention to the interaction between the driver's wage and the enforcement policies. I find that time-based instruments play a central role in influencing speeding behavior, and I use this information to recommend optimal policies for various different objectives and regions with various average wage levels.