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USSR babies: who drinks vodka in Russia?

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  • Evgeny Yakovlev

    ()
    (New Economic School and CEFIR)

Abstract

By analyzing individual-level data on the alcohol consumption of Russian males, this paper finds evidence for a longstanding persistence of habits towards certain type of habit-forming goods. Males who grew up in the USSR are accustomed to vodka – the most popular liquor during the Soviet era – whereas those who entered their twenties in the post-Soviet period after the beer industry expanded prefer beer. This finding emphasizes the importance of policy towards young people when they form their habits. The second finding of this paper is that habits and substitution effects outweigh “stepping stone” effect, in both short and long run periods. Policy simulation shows that a 50% subsidy on beer and 30% tax on vodka will decrease male mortality from 1.41% to 0.95% in 10 years, halving the gap between Russian and western-European mortality rates.

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Bibliographic Info

Paper provided by Center for Economic and Financial Research (CEFIR) in its series Working Papers with number w0183.

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Length: 41 pages
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:cfr:cefirw:w0183

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  1. van Ours, Jan C., 2003. "Is cannabis a stepping-stone for cocaine?," Journal of Health Economics, Elsevier, Elsevier, vol. 22(4), pages 539-554, July.
  2. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2005. "Trusting the Stock Market," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5288, C.E.P.R. Discussion Papers.
  3. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, SUNY-Oswego, Department of Economics, number emetr2, Spring.
  4. Yuri Andrienko & Sergei Guriev, 2004. "Determinants of interregional mobility in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 12(1), pages 1-27, 03.
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Cited by:
  1. Yana Roshchina, 2013. "To drink or not to drink: the microeconomic analysis of alcohol consumption in Russia in 2006-2010," HSE Working papers, National Research University Higher School of Economics WP BRP 20/SOC/2013, National Research University Higher School of Economics.

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