• Skip to content
  • Skip to footer
  • Skip to content
  • Skip to navigation
  • Skip to footer
University of Central Arkansas Logo

Arkansas Center for Research in Economics

Menu
  • UCA Home
  • Admissions
  • Academics
  • Campus Life
  • Athletics
  • Connect
  • About UCA
  • A to Z
  • Home
  • Our People
  • Research Areas
    • K-12 Education
    • Labor Market Regulation
    • Property Rights
    • Targeted Incentives
    • Taxes and Spending
    • Transparency
  • Student Programs
    • Undergraduate Research Fellows
    • Reading Group
  • Events
    • Speaker Series
    • Colloquia
  • Blog
  • K-12 Resources
    • Economics Nobel Prize Lecture Series
  • Contact Us
  • Annual Reports & Media

Dry Counties Left Thirsty For Revenue

By Ryan Jackson

For most Americans the idea of not being able to go to a store and purchase alcohol seems very foreign. 

However, the idea is not foreign to many Arkansas residents as dry counties are very prevalent in the state. Nearly half of Arkansas’ counties are dry, 34 out of 75 counties. 

Not having access to purchasing alcohol forces citizens of dry counties to have to drive across state or county lines in order to make a purchase. This is not only costly for the citizens wishing to buy alcohol, but to the counties, which are missing out on commerce, and tax revenue by prohibiting the sale of alcohol.

Some may wonder why dry counties even exist. 

The answer to that is often explained in economic terms as a “bootleggers and Baptists” scenario. In this scenario, the opposition of a county converting from dry to “wet” status, is not only from the Baptists who oppose the sale of alcohol for religious purposes, but also from the bootleggers who profit off of bootlegging alcohol into the dry county from wet counties that sell alcohol. 

Bootleggers aren’t as common as they were in the past, so the bootleggers in a modern scenario are “county line” liquor stores in neighboring wet counties. 

In UCA Assistant Professor of Economics and ACRE Scholar Dr. Jeremy Horpedahl’s recently-published paper “Bootleggers, Baptists, and Ballots: Coalitions in Arkansas’ alcohol-legalization elections”  in Public Choice he explained that the political coalitions against  the legalization of alcohol in dry counties are often formed by liquor stores in bordering wet counties as well as churches and other religious organizations. He explains the funding used by these coalitions comes mostly from the liquor stores, while the churches and religious organizations primarily contribute to the coalitions in non-monetary forms. 

A coalition composed of liquor stores and churches, fighting for a common cause may sound surprising to some, however the economic effects of dry counties may be even more surprising. In a 2014 study by the University of Arkansas Department of Economics, the authors estimated that in 2013 total alcohol sales in Faulkner County would have amounted to nearly $30 million and would have generated over $100,000 in sales tax revenue, had Faulkner been a wet county. While these revenues are significant, they would be even larger in 2020 due to the growth in population of Faulkner County since 2013. 

The tax revenue that could be generated by alcohol sales in Faulkner county could go directly back into the community, yet as long as Faulkner County remains dry, its residents will never see those potential tax revenues, and the same argument can be made for dry counties across the entire state.  

Posted in: Regulation on July 28, 2020 Tagged: Arkansas, dry counties

Footer

Contact Us

University of Central Arkansas
College of Business
201 Donaghey Avenue
Conway, Arkansas 72035
E-mail: acre@uca.edu

Disclaimer

The views and opinions expressed herein are those of the authors and do not necessarily reflect the views of the University of Central Arkansas nor are they endorsed by the University of Central Arkansas.

ACRE does not campaign for, promote, advocate, or support specific political parties or political candidates.

Follow Us!

Follow us on social media:

Facebook: Arkansas Center for Research in Economics ACRE
YouTube: Arkansas Center for Research in Economics
Twitter: @acre_uca

University of Central Arkansas · 201 Donaghey Ave., Conway, AR 72035 · (501) 450-5000
UCA is accredited by the Higher Learning Commission.
Report Web Accessibility Issue | Concerned About a Student? | Privacy
Copyright © 2026 · All Rights Reserved