Ben Casnocha summarizes Tyler Cowen's findings on liquor laws:
Texas allowed the sale of alcohol in restaurants only in 1971. A restaurant boom followed. Many counties still have dry laws. While the exact numbers fluctuate, of the 120 counties of Kentucky, 55 are dry and 35 more have partial restrictions on alcohol. Of the 254 counties in Texas, 74 are completely dry; more than half of the counties in Arkansas are dry. It is estimated that about eighteen million Americans live in dry areas. This overregulation has shackled innovation and also reflects broader anti-alcohol attitudes.
More on Cowen's book, An Economist Gets Lunch, here, here, here, here and here.