Effects of Alcoholic Beverage Prices and Legal Drinking Ages on Youth Alcohol Use

Coate, Douglas; Grossman, Moses

doi:10.1086/467152

Cited by 191 publications

(77 citation statements)

References 11 publications

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“…Becker, Grossman, and Murphy (1994) find substantial elasticity of demand for cigarettes in the short and long run (-0.4 and between -0.7 and -0.8, respectively). Similar elasticities of demand for alcohol are reported by Coate and Grossman (1988).…”

Section: Related Literaturesupporting

confidence: 80%

Drug decriminalization and the price of illicit drugs

Félix

Portugal

2017

International Journal of Drug Policy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. This study is an empirical assessment of the impact of the drug decriminalization policy followed by Portugal in July, 2001. We investigate especially the impact of the policy change on the price of illicit drugs. The analysis is performed using a difference-in-differences approach and a comprehensive set of countries as control group. We also investigate the application of Synthetic Control Method in order to construct a synthetic control unit from a convex combination of other countries. The results suggest that the prices of opiates and cocaine in the post-treatment period did not decrease in the sequence of the policy change. This result contrasts with the argument that softer drug law enforcement necessarily leads to lower prices and, consequently, to higher drug usage rates and dependence.JEL Classification: C21, D04

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Section: Related Literaturesupporting

confidence: 80%

Drug decriminalization and the price of illicit drugs

Félix

Portugal

2017

International Journal of Drug Policy

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“…The choice of explanatory variables was based on economic demand theory and on the empirical results from earlier studies (see, for instance, Coate & Grossman 1988;Grossman et al . 1994;Sutton & Godfrey 1995;Karlsson & Andréasson 1997;Berggren & Sutton 1999;Niklasson et al .…”

Section: Independent Variablesmentioning

confidence: 99%

“…Economic research has focused on issues such as the relationship between drinking and schooling (Mullahy & Sindelar 1989 Evans 1997), the effects of prices and minimum age drinking laws on drinking and negative externalities of drinking (Coate & Grossman 1988;Grossman et al . 1994;Grossman & Markowitz 1999;Markowitz 2000;Kenkel 2001).…”

Section: Introductionmentioning

confidence: 99%

Young people and alcohol: an econometric analysis

Lundborg

2002

Addiction

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Aims To analyse the determinants of youth drinking behaviour within an economic-theoretical framework. The paper focuses especially on the effects of (a) having parents willing to supply alcohol, (b) living in a single-parent household, (c) having parents who are currently unemployed and (d) having received education about alcohol, narcotics and tobacco. Design, setting and participants A Swedish cross-sectional survey data on 833 individuals aged 12-18 years was used to analyse the effects of the above variables on participation in drinking, frequency of drinking, intensity of drinking and binge drinking. Separate analyses were conducted for beer, wine and spirits. Care was taken in using appropriate econometric methods for the questions posed (negative binomial regression, censored regression and probit regression). Findings Having parents willing to supply alcohol increased frequency ( P < 0.05) of beer, wine and spirits consumption, intensity ( P < 0.05) of wine, spirits and illicit alcohol consumption, and increased probabilities ( P < 0.10) of binge drinking and participation in drinking ( P < 0.05). No effects were seen from living in a single-parent household. Having received education about alcohol, narcotics and tobacco had a negative association only with intensity ( P < 0.10) of beer consumption. Having a father who was currently unemployed was associated with an increased ( P < 0.05) probability of binge drinking but a reduced ( P < 0.05) frequency of wine consumption. Conclusions The positive effect of having parents willing to supply alcohol could reflect that these individuals face lower acquisition costs or lower psychological costs in consumption. It could also reflect a price effect, if the individual receives the alcohol free from his or her parents.

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“…Coate and Grossman (1988) reported that as alcohol excise taxes increased, youth drinking rates and deaths resulting from motor vehicle accidents significantly decreased. O'Malley and Wagenaar (1991) found that as states increased minimum drinking age laws, alcohol use and problems associated with it significantly decreased.…”

Section: Introductionmentioning

confidence: 99%

Secondhand effects of student alcohol use reported by neighbors of colleges: the role of alcohol outlets

Wechsler¹,

Lee²,

Hall

et al. 2002

Social Science & Medicine

126

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This is a study of the secondhand effects of student alcohol use experienced by residents of neighborhoods near college campuses. We examined the relationship of a college's level of binge drinking and the number of alcohol outlets in the immediate area, to lowered quality of neighborhood life through such secondhand effects. Adults from 4661 households in the United States were interviewed through a stratified list-assisted random digit dialing telephone survey. The interview schedule included questions about residents' experiences of secondhand effects of alcohol use such as noise, vandalism or public disturbances. Reports about the quality of neighborhood life provided by respondents residing near colleges were compared with those of respondents who did not live near colleges; and reports of neighbors of colleges with high rates of binge drinking were compared with those of neighbors of colleges with lower rates. The presence of alcohol outlets in these areas was also compared. Residents near colleges and particularly near colleges with heavy episodic drinking reported the presence of more alcohol outlets within a mile. Those neighborhoods were characterized by lower socioeconomic status. Neighbors living near college campuses were more likely to report a lowered quality of neighborhood life through such secondhand effects of heavy alcohol use as noise and disturbances, vandalism, drunkenness, vomiting and urination. A path analysis indicated that the number of nearby alcohol outlets was an important factor mediating the relationship between colleges, especially those with high rates of binge drinking, and such secondhand effects. The results suggest that neighborhood disruptions around colleges due to heavy alcohol use may be reduced by limiting the presence of alcohol outlets in those areas, and the marketing practices that this engenders. r

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Effects of Alcoholic Beverage Prices and Legal Drinking Ages on Youth Alcohol Use

Cited by 191 publications

References 11 publications

Drug decriminalization and the price of illicit drugs

Drug decriminalization and the price of illicit drugs

Young people and alcohol: an econometric analysis

Secondhand effects of student alcohol use reported by neighbors of colleges: the role of alcohol outlets

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