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Alcohol advertising and alcohol consumption by adolescents

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Author Info
Henry Saffer
Dhaval Dave

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Abstract

This study investigates the effects of alcohol advertising on adolescent alcohol consumption. The theory of an industry response function and evidence from prior studies indicate the importance of maximizing the variance in advertising measures. Monitoring the Future (MTF) and National Longitudinal Survey of Youth 1997 (NLSY97) data are augmented with alcohol advertising, originating on the market level, for five media. The large sample of the MTF allows estimation of race and gender-specific models. The longitudinal nature of the NLSY97 allows controls for unobserved heterogeneity with state-level and individual fixed effects. Price and advertising effects are generally larger for females relative to males. Controls for individual heterogeneity yield larger advertising effects, implying that the MTF results may understate the effects of alcohol advertising. Results from the NLSY97 suggest that a 28% reduction in alcohol advertising would reduce adolescent monthly alcohol participation from 25% to between 24 and 21%. For binge participation, the reduction would be from 12% to between 11 and 8%. The past month price-participation elasticity is estimated at −0.26, consistent with prior studies. The results show that reduction of alcohol advertising can produce a modest decline in adolescent alcohol consumption, though effects may vary by race and gender. Copyright © 2006 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1091
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 15 (2006)
Issue (Month): 6 ()
Pages: 617-637
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:wly:hlthec:v:15:y:2006:i:6:p:617-637

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Nelson, Jon P & Moran, John R, 1995. "Advertising and US Alcoholic Beverage Demand: System-Wide Estimates," Applied Economics, Taylor and Francis Journals, vol. 27(12), pages 1225-36, December.
  2. Nelson, Jon P., 2001. "Alcohol Advertising and Advertising Bans: A Survey of Research Methods, Results, and Policy Implications," Working Papers 7-01-2, Pennsylvania State University, Department of Economics. [Downloadable!]
  3. Duffy, Martyn, 1995. "Advertising in demand systems for alcoholic drinks and tobacco: A comparative study," Journal of Policy Modeling, Elsevier, vol. 17(6), pages 557-577, December. [Downloadable!] (restricted)
  4. Dills, Angela K. & Jacobson, Mireille & Miron, Jeffrey A., 2005. "The effect of alcohol prohibition on alcohol consumption: evidence from drunkenness arrests," Economics Letters, Elsevier, vol. 86(2), pages 279-284, February. [Downloadable!] (restricted)
  5. Becker, Gary S & Murphy, Kevin M, 1993. "A Simple Theory of Advertising as a Good or Bad," The Quarterly Journal of Economics, MIT Press, vol. 108(4), pages 941-64, November. [Downloadable!] (restricted)
  6. Lariviere, Eric & Larue, Bruno & Chalfant, Jim, 2000. "Modeling the demand for alcoholic beverages and advertising specifications," Agricultural Economics, Blackwell, vol. 22(2), pages 147-162, March. [Downloadable!] (restricted)
  7. David Blake & Angelika Nied, 1997. "The demand for alcohol in the United Kingdom," Applied Economics, Taylor and Francis Journals, vol. 29(12), pages 1655-1672, December. [Downloadable!] (restricted)
  8. Blake, David & Nied, Angelika, 1997. "The Demand for Alcohol in the United Kingdom," Applied Economics, Taylor and Francis Journals, vol. 29(12), pages 1655-72, December. [Downloadable!] (restricted)
  9. Henry G. Grabowski, 1976. "The Effects of Advertising on the Interindustry Distribution of Demand," NBER Chapters, in: Explorations in Economic Research, Volume 3, number 1, pages 21-75 National Bureau of Economic Research, Inc. [Downloadable!]
  10. Saffer, Henry & Dave, Dhaval, 2002. "Alcohol Consumption and Alcohol Advertising Bans," Applied Economics, Taylor and Francis Journals, vol. 34(11), pages 1325-34, July. [Downloadable!] (restricted)
  11. Henry Saffer & Frank J. Chaloupka, 1999. "Demographic Differentials in the Demand for Alcohol and Illicit Drugs," NBER Chapters, in: The Economic Analysis of Substance Use and Abuse: An Integration of Econometrics and Behavioral Economic Research, pages 187-212 National Bureau of Economic Research, Inc. [Downloadable!]
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  12. Jon P. Nelson, 1999. "Broadcast Advertising and U.S. Demand for Alcoholic Beverages," Southern Economic Journal, Southern Economic Association, vol. 65(4), pages 774-790, April.
  13. Duffy, Martyn, 1991. "Advertising in Demand Systems: Testing a Galbraithian Hypothesis," Applied Economics, Taylor and Francis Journals, vol. 23(3), pages 485-96, March.
  14. Duffy, Martyn, 2001. "Advertising in Consumer Allocation Models: Choice of Functional Form," Applied Economics, Taylor and Francis Journals, vol. 33(4), pages 437-56, March. [Downloadable!] (restricted)
  15. Nelson, Jon P. & Young, Douglas J., 2001. "Do Advertising Bans Work? An International Comparison," Working Papers 6-01-1, Pennsylvania State University, Department of Economics. [Downloadable!]
  16. Young, Douglas J., 1993. "Alcohol advertising bans and alcohol abuse: Comment," Journal of Health Economics, Elsevier, vol. 12(2), pages 213-228, July. [Downloadable!] (restricted)
  17. Saffer, Henry, 1991. "Alcohol advertising bans and alcohol abuse: An international perspective," Journal of Health Economics, Elsevier, vol. 10(1), pages 65-79, May. [Downloadable!] (restricted)
  18. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May. [Downloadable!] (restricted)
  19. Ornstein, Stanley I & Hanssens, Dominique M, 1985. " Alcohol Control Laws and the Consumption of Distilled Spirits and Beer," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 12(2), pages 200-213, September.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ligeon, Carel & Gregorowicz, Philip & Jolly, Curtis, 2007. "Factors Influencing Alcohol Consumption In Caribbean And Latin American Countries," 2006 West Indies Agricultural Economics Conference, July 2006, San Juan, Puerto Rico 36956, Caribbean Agro-Economic Society. [Downloadable!]
  2. Shin-Yi Chou & Inas Rashad & Michael Grossman, 2005. "Fast-Food Restaurant Advertising on Television and Its Influence on Childhood Obesity," NBER Working Papers 11879, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Mullins, Michelle & Milyo, Jeffrey & Sykuta, Michael, 2006. "Regulating for Public Health: Motivations for and Efficacy of State Alcohol Regulations," 2006 Annual meeting, July 23-26, Long Beach, CA 21176, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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