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Economic Conditions and Alcohol Problems

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Author Info
Christopher Ruhm

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Abstract

This study investigates the relationship between macroeconomic conditions and two alcohol-related outcomes -- liquor consumption and highway vehicle fatalities. Fixed-effect models are estimated for the 48 contiguous states over the 1975-1988 time period and within-state variations are the focus of analysis. Alcohol consumption and traffic deaths vary procyclically, with a major portion of the effect of economic downturns attributed to reductions in incomes. The intake of hard liquor is the most sensitive to the state of the macroeconomy. There is no evidence, however, that fluctuations in economic conditions have a disproportionate impact on the drunk-driving of young adults.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4914.

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Date of creation: Nov 1994
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Handle: RePEc:nbr:nberwo:4914

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I12 - Health, Education, and Welfare - - Health - - - Health Production

References listed on IDEAS
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  1. Theodore J. Joyce & Naci H. Mocan, 1993. "Unemployment and Infant Health: Times-Series Evidence from the State of Tennessee," NBER Working Papers 3694, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Douglas Coate & Michael Grossman, 1988. "Effects of Alcoholic Beverage Prices and Legal Drinking Ages on Youth Alcohol Use," NBER Working Papers 1852, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Saffer, Henry & Chaloupka, Frank, 1989. "Breath Testing and Highway Fatality Rates," Applied Economics, Taylor and Francis Journals, vol. 21(7), pages 901-12, July.
  4. Forbes, John F. & McGregor, Alan, 1984. "Unemployment and mortality in post-war Scotland," Journal of Health Economics, Elsevier, vol. 3(3), pages 239-257, December. [Downloadable!] (restricted)
  5. Akerlof, George A, 1991. "Procrastination and Obedience," American Economic Review, American Economic Association, vol. 81(2), pages 1-19, May.
  6. McAvinchey, Ian D, 1988. "A Comparison of Unemployment, Income and Mortality Interaction for Five European Countries," Applied Economics, Taylor and Francis Journals, vol. 20(4), pages 453-71, April.
  7. Philip J. Cook & George Tauchen, 1982. "The Effect of Liquor Taxes on Heavy Drinking," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 379-390, Autumn. [Downloadable!] (restricted)
  8. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr. [Downloadable!] (restricted)
  9. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 722-42, August. [Downloadable!] (restricted)
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  10. Kenkel, Donald S, 1993. "Drinking, Driving, and Deterrence: The Effectiveness and Social Costs of Alternative Policies," Journal of Law & Economics, University of Chicago Press, vol. 36(2), pages 877-913, October.
  11. Mullahy, John & Sindelar, Jody L, 1994. "Do Drinkers Know When to Say When? An Empirical Analysis of Drunk Driving," Economic Inquiry, Oxford University Press, vol. 32(3), pages 383-94, July.
  12. Kim B. Clark & Lawrence H. Summers, 1982. "The Dynamics of Youth Unemployment," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 199-234 National Bureau of Economic Research, Inc. [Downloadable!]
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  13. Henry Saffer & Michael Grossman, 1987. "Beer Taxes, the Legal Drinking Age, and Youth Motor Vehicle Fatalities," NBER Working Papers 1914, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August. [Downloadable!] (restricted)
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