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Rational alcohol addiction: evidence from the Russian longitudinal monitoring survey

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  • Badi H. Baltagi

    (Department of Economics and Center for Policy Research, Syracuse University, USA)

  • Ingo Geishecker

    (Institute for East European Studies, Free University Berlin, Germany)

Abstract

Alcohol consumption in Russia is legendary and has been reported to be the third leading cause of death in the former Soviet Union after heart disease and cancer. Are Russian alcohol consumers rational addicts? This paper uses eight rounds of a nationally representative Russian survey spanning the period 1994-2003 to estimate a rational addiction (RA) model for alcohol consumption. This is done in a panel data setting as well as on a wave-by-wave basis. The profile of the Russian drinker finds a huge difference between males and females and the model is estimated by gender. We do not find support for the RA model in Russia for women. For men, although we find that some implications of the RA model are satisfied, we fail to endorse the model empirically on grounds of implausible negative estimates of the discount rate. Copyright © 2006 John Wiley & Sons, Ltd.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 15 (2006)
Issue (Month): 9 ()
Pages: 893-914

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Handle: RePEc:wly:hlthec:v:15:y:2006:i:9:p:893-914

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

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Cited by:
  1. Staudigel, Matthias, 2011. "How (much) do food prices contribute to obesity in Russia?," Economics & Human Biology, Elsevier, vol. 9(2), pages 133-147, March.
  2. Herzfeld, Thomas & Huffman, Sonya K. & Rizov, Marian, 2009. "The Dynamics of the Russian Lifestyle During Transition: Changes in Food, Alcohol and Cigarette Consumption," Staff General Research Papers 13116, Iowa State University, Department of Economics.
  3. Linz, Susan J. & Semykina, Anastasia, 2010. "Perceptions of economic insecurity: Evidence from Russia," Economic Systems, Elsevier, vol. 34(4), pages 357-385, December.
  4. Irina Denisova, 2009. "Mortality in Russia: Microanalysis," Working Papers w0128, Center for Economic and Financial Research (CEFIR).
  5. Laporte A & Karimova A & Ferguson B, 2009. "Quantile Regression Analysis of the Rational Addiction Model: Making unobservable heterogeneity observable," Health, Econometrics and Data Group (HEDG) Working Papers 09/18, HEDG, c/o Department of Economics, University of York.
  6. Herzfeld, Thomas & Huffman, Sonya Kostova & Oskam, Arie J. & Rizov, Marian, 2009. "Changes in Food, Alcohol and Cigarettes Consumption during Transition: Evidence from Russia," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49239, Agricultural and Applied Economics Association.
  7. Herzfeld, Thomas & Huffman, Sonya K. & Rizov, Marian, 2013. "The dynamics of food, alcohol and cigarette consumption in Russia during transition," Staff General Research Papers 35904, Iowa State University, Department of Economics.
  8. Luca Bossi & Pedro Gomis-Porqueras & David L. Kelly, 2007. "Optimal Second Best Taxation of Addictive Goods," Working Papers 0708, University of Miami, Department of Economics.

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