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Title: The Effect of Taxes on Alcoholic Consumption: An Individual Level of Analysis with a Correction for Aggregate Public Policy Variables
Resulting in 1 citation.
1. Gius, Mark Paul
The Effect of Taxes on Alcoholic Consumption: An Individual Level of Analysis with a Correction for Aggregate Public Policy Variables
Pennsylvania Economic Review 11,1 (Spring 2002): 76-93
Cohort(s): NLSY79
Publisher: Pennsylvania Economic Association
Keyword(s): Alcohol Use; Modeling, OLS; Modeling, Probit; State-Level Data/Policy; Taxes

Permission to reprint the abstract has not been received from the publisher.

The present study estimates alcohol demand functions at the individual level in order to determine the effect of taxes on alcoholic beverage demand. The present study combines two unique data sets: the National Longitudinal Survey of Youth and data on alcoholic beverage taxes at the state level. Using ordinary least squares and binomial probit regression analyses, both of which are corrected for aggregate public policy variables, results of the present study indicate that alcoholic beverage taxes (distilled spirits taxes, wine taxes, and beer taxes) have no effect on the alcoholic beverage consumption of adults aged 29-33 years. Binge drinking (defined as having 6 or more drinks on one occasion) is also not affected by taxes. A revised regression that eliminates the aggregate variables results in a finding that taxes may have a statistically-significant effect on alcohol consumption.
Bibliography Citation
Gius, Mark Paul. "The Effect of Taxes on Alcoholic Consumption: An Individual Level of Analysis with a Correction for Aggregate Public Policy Variables." Pennsylvania Economic Review 11,1 (Spring 2002): 76-93.