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Rational Addiction and Alcohol Consumption: Evidence from the Nordic Countries

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Author Info

  • Bentzen, J.
  • Eriksson, T.
  • Smith, V.

Abstract

The purpose of this paper is to test Becker and Murphy's (1988) rational addiction model on (35 years of) time series data on alcohol consumption in each of the four Nordic countries: Denmark, Finland, Norway and Sweden. The empirical relevance of rational addiction theory is assessed by examining the influence of past and future consumption as well as past, contemporaneous and future prices on current consumption.

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Bibliographic Info

Paper provided by Aarhus School of Business - Department of Economics in its series Papers with number 97-16.

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Length: 21 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:aascbu:97-16

Contact details of provider:
Postal: Department of Economics, Faculty of Business Administration. The Aarhus School of Business. Fuglesangs Alle 4. DK- 8210 Aarhus V - Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/about/departments/nat.aspx
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Keywords: ALCOHOL ; CONSUMPTION;

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Cited by:
  1. Sisto, Andrea & Zanola, Roberto, 2004. "Rational Addiction to Cinema? A Dynamic Panel Analysis of European Countries," POLIS Working Papers 38, Institute of Public Policy and Public Choice - POLIS.
  2. Kwabena Gyimah-Brempong, 2006. "Neighborhood income, alcohol availability, and crime rates," The Review of Black Political Economy, Springer, vol. 33(3), pages 21-44, March.
  3. Thomas Demuynck & Ewout Verriest, 2013. "I’Ll Never Forget My First Cigarette: A Revealed Preference Analysis Of The “Habits As Durables” Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 717-738, 05.
  4. Martyn Duffy, 2006. "Tobacco consumption and policy in the United Kingdom," Applied Economics, Taylor & Francis Journals, vol. 38(11), pages 1235-1257.
  5. Xiaoou Liu & Rigoberto Lopez, 2012. "Evidence of rational addiction to carbonated soft drinks?," China Agricultural Economic Review, Emerald Group Publishing, vol. 4(3), pages 300-317, October.
  6. Pierpaolo Pierani & Silvia Tiezzi, 2009. "Addiction and interaction between alcohol and tobacco consumption," Empirical Economics, Springer, vol. 37(1), pages 1-23, September.
  7. Roger Collet & Mathieu De Lapparent & Laurent Hivert, 2010. "Addiction to car use and dynamic elasticity measures in France," Post-Print hal-00614966, HAL.
  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.
  9. Badi H. Baltagi & James M. Griffin, 2002. "Rational addiction to alcohol: panel data analysis of liquor consumption," Health Economics, John Wiley & Sons, Ltd., vol. 11(6), pages 485-491.
  10. Kaili Shen & David Giles, 2006. "Rational exuberance at the mall: addiction to carrying a credit card balance," Applied Economics, Taylor & Francis Journals, vol. 38(5), pages 587-592.
  11. C. Vilaplana & José M. Labeaga & S. Jiménez-Martín, 2006. "Further evidence about alcohol consumption and the business cycle," Working Papers 2006-06, FEDEA.
  12. Xiaoou, Liu, 2009. "Rational Addiction Evidence From Carbonated Soft Drinks," 2009 Conference, August 16-22, 2009, Beijing, China 51620, International Association of Agricultural Economists.

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