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Demand for Alcohol Consumption in Russia and Its Implication for Mortality

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  • Evgeny Yakovlev

Abstract

Alcohol abuse is widely blamed for the very high rate of male mortality in Russia. I estimate a structural model of the demand for alcohol that incorporates two features of alcohol consumption, peer effects and habits. I use a kink in the policy regime of the excise tax on alcohol and regional variation in alcohol regulations to estimate a price elasticity of demand for alcohol. I find that peer influence and habits are critical determinants of the response of alcohol demand to price changes. The estimates imply that increases in alcohol prices would yield significant reductions in mortality.

Suggested Citation

  • Evgeny Yakovlev, 2018. "Demand for Alcohol Consumption in Russia and Its Implication for Mortality," American Economic Journal: Applied Economics, American Economic Association, vol. 10(1), pages 106-149, January.
    • Handle: RePEc:aea:aejapp:v:10:y:2018:i:1:p:106-49
    Note: DOI: 10.1257/app.20130170
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    Citations

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    Cited by:

    1. Ahammer, Alexander & Bauernschuster, Stefan & Halla, Martin & Lachenmaier, Hannah, 2022. "Minimum legal drinking age and the social gradient in binge drinking," Journal of Health Economics, Elsevier, vol. 81(C).
    2. Mikhail Mamonov & Anna Pestova, 2023. "The Price of War: Macroeconomic and Cross-Sectional Effects of Sanctions on Russia," CERGE-EI Working Papers wp756, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    3. Hinnosaar, Marit & Liu, Elaine M., 2022. "Malleability of Alcohol Consumption: Evidence from Migrants," Journal of Health Economics, Elsevier, vol. 85(C).
    4. Evgeny Yakovlev & Margarita Khvan & Elizaveta Smorodenkova, 2020. "Economic Crises and Mortality Among the Elderly. Evidence from Two Russian Crises," Working Papers w0266, New Economic School (NES).
    5. Hinnosaar, Marit & Liu, Elaine, 2020. "Persistence in alcohol consumption: evidence from migrants," CEPR Discussion Papers 15196, C.E.P.R. Discussion Papers.
    6. Kolosnitsyna, Marina & Sukhanova, Varvara, 2023. "Price elasticities revisited: The effect of price changes caused by taxation on the amount of alcohol consumed," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 69, pages 28-47.
    7. Elizabeth Brainerd, 2021. "Mortality in Russia Since the Fall of the Soviet Union," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 63(4), pages 557-576, December.
    8. Zhang, Anquan & Ni, Pengfei & Ling, Chen, 2022. "Peer effects in rural housing demand: Evidence from China," China Economic Review, Elsevier, vol. 73(C).
    9. Alexander S. Skorobogatov, 2021. "The effect of alcohol sales restrictions on alcohol poisoning mortality: Evidence from Russia," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1417-1442, June.
    10. Kossova, T. & Kossova, E. & Sheluntsova, M., 2023. "Estimating effect of healthcare expenditures and alcohol overconsumption on the health of the Russian population," Journal of the New Economic Association, New Economic Association, vol. 60(3), pages 66-78.
    11. Evgeny Yakovlev, 2021. "Alcoholism and mortality in Eastern Europe," IZA World of Labor, Institute of Labor Economics (IZA), pages 168-168, August.
    12. Eliason, Marcus & Johansson, Per & Nilsson, Martin, 2018. "Forward-looking moral hazard in social insurance: evidence from a natural experiment," Working Paper Series 2018:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    13. Ilia Sorvachev & Evgeny Yakovlev, 2019. "Short-Run and Long-Run Effects of Sizable Child Subsidy: Evidence from Russia," Working Papers w0254, New Economic School (NES).
    14. Malisauskaite, Gintare & Klein, Alexander, 2018. "Drinking under communism: Why do alcohol consumption habits in Eastern Europe differ from the west in the long-run?," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 821-837.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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