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Habit and Heterogeneity in the Youthful Demand for Alcohol

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  • Michael J. Moore
  • Philip J. Cook

Abstract

Observed patterns of youthful drinking indicate substantial persistence. This paper analyzes how much of that persistence reflects the actual development of a habit, and how much is due to unobserved aspects of the individual and the environment. The role of restrictions on alcohol availability, both in the current period and in adolescence, is also explored. We find that much of the observed persistence represents habit formation, and not unobserved characteristics. Consequently, restrictions on availability, particularly at an early age, alter subsequent patterns of alcohol consumption and abuse.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5152.

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Date of creation: Jun 1995
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Handle: RePEc:nbr:nberwo:5152

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  1. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(4), pages 722-42, August.
  2. Douglas Coate & Michael Grossman, 1986. "Effects of Alcoholic Beverage Prices and Legal Drinking Ages on Youth Alcohol Use," NBER Working Papers 1852, National Bureau of Economic Research, Inc.
  3. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 96(4), pages 675-700, August.
  4. Gary S. Becker & Michael Grossman & Kevin M. Murphy, 1990. "An Empirical Analysis of Cigarette Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State, Chicago - Center for Study of Economy and State 61, Chicago - Center for Study of Economy and State.
  5. John Bound & David A. Jaeger & Regina Baker, 1993. "The Cure Can Be Worse than the Disease: A Cautionary Tale Regarding Instrumental Variables," NBER Technical Working Papers 0137, National Bureau of Economic Research, Inc.
  6. James J. Heckman, 1981. "Heterogeneity and State Dependence," NBER Chapters, in: Studies in Labor Markets, pages 91-140 National Bureau of Economic Research, Inc.
  7. Michael Grossman & Frank J. Chaloupka & Henry Saffer & Adit Laixuthai, 1993. "Effects of Alcohol Price Policy on Youth," NBER Working Papers 4385, National Bureau of Economic Research, Inc.
  8. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, Elsevier, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
  9. Pollak, Robert A, 1970. "Habit Formation and Dynamic Demand Functions," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 78(4), pages 745-63, Part I Ju.
  10. Manning, W. G. & Duan, N. & Rogers, W. H., 1987. "Monte Carlo evidence on the choice between sample selection and two-part models," Journal of Econometrics, Elsevier, Elsevier, vol. 35(1), pages 59-82, May.
  11. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, Econometric Society, vol. 49(6), pages 1417-26, November.
  12. Adit Laixuthai & Frank J. Chaloupka, 1993. "Youth Alcohol Use and Public Policy," NBER Working Papers 4278, National Bureau of Economic Research, Inc.
  13. Phlips, Louis, 1978. "The Demand for Leisure and Money," Econometrica, Econometric Society, Econometric Society, vol. 46(5), pages 1025-43, September.
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Cited by:
  1. Michael Grossman & Robert Kaestner & Sara Markowitz, 2004. "An Investigation of the Effects of Alcohol Policies on Youth STDs," NBER Working Papers 10949, National Bureau of Economic Research, Inc.
  2. Jeffrey A. Miron, 1997. "The Effects of Alcohol Prohibition on Alcohol Consumption," Papers, Boston University - Industry Studies Programme 0078, Boston University - Industry Studies Programme.
  3. C. Vilaplana & José M. Labeaga & S. Jiménez-Martín, 2006. "Further evidence about alcohol consumption and the business cycle," Working Papers 2006-06, FEDEA.
  4. Pinka Chatterji & Sara Markowitz, 2000. "The Impact of Maternal Alcohol and Illicit Drug Use on Children's Behavior Problems: Evidence from the Children of the National Longitudinal Survey..," NBER Working Papers 7692, National Bureau of Economic Research, Inc.
  5. Kwabena Gyimah-Brempong, 2006. "Neighborhood income, alcohol availability, and crime rates," The Review of Black Political Economy, Springer, Springer, vol. 33(3), pages 21-44, March.
  6. Angela K. Dills & Jeffrey K. Miron, 2003. "Alcohol Prohibition and Cirrhosis," NBER Working Papers 9681, National Bureau of Economic Research, Inc.
  7. Michael Grossman & Sara Markowitz, 2002. "I Did What Last Night?!!! Adolescent Risky Sexual Behaviors and Substance Use," NBER Working Papers 9244, National Bureau of Economic Research, Inc.
  8. David Figlio & Jens Ludwig, 2000. "Sex, Drugs, and Catholic Schools: Private Schooling and Non-Market Adolescent Behaviors," NBER Working Papers 7990, National Bureau of Economic Research, Inc.
  9. Rosalie Liccardo Pacula, 1998. "Adolescent Alcohol and Marijuana Consumption: Is There Really a Gateway Effect?," NBER Working Papers 6348, National Bureau of Economic Research, Inc.
  10. Markowitz, Sara & Grossman, Michael, 2000. "The effects of beer taxes on physical child abuse," Journal of Health Economics, Elsevier, Elsevier, vol. 19(2), pages 271-282, March.
  11. Philip J. Cook & Michael J. Moore, 2001. "Environment and Persistence in Youthful Drinking Patterns," NBER Chapters, in: Risky Behavior among Youths: An Economic Analysis, pages 375-438 National Bureau of Economic Research, Inc.
  12. Yuriy Andrienko & A. Nemtsov, 2006. "Estimation of Individual Demand for Alcohol," Working Papers w0089, Center for Economic and Financial Research (CEFIR).
  13. Rees, Daniel I. & Argys, Laura M. & Averett, Susan L., 2001. "New evidence on the relationship between substance use and adolescent sexual behavior," Journal of Health Economics, Elsevier, Elsevier, vol. 20(5), pages 835-845, September.
  14. Jenny Williams, 2005. "Habit formation and college students' demand for alcohol," Health Economics, John Wiley & Sons, Ltd., vol. 14(2), pages 119-134.
  15. Nilsson, J Peter, 2008. "Does a pint a day affect your child’s pay? The effect of prenatal alcohol exposure on adult outcomes," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2008:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  16. Michael Grossman & Frank J. Chaloupka & Ismail Sirtalan, 1995. "An Empirical Analysis of Alcohol Addiction: Results from the Monitoring the Future Panels," NBER Working Papers 5200, National Bureau of Economic Research, Inc.
  17. Sara Markowitz & Michael Grossman, 1998. "The Effects of Alcohol Regulation on Physical Child Abuse," NBER Working Papers 6629, National Bureau of Economic Research, Inc.
  18. Jason Fletcher, 2012. "Peer influences on adolescent alcohol consumption: evidence using an instrumental variables/fixed effect approach," Journal of Population Economics, Springer, Springer, vol. 25(4), pages 1265-1286, October.
  19. Sangho KIM & Donghyun PARK, 2010. "Addictive behavior in cinema demand: evidence from Korea," Economic Growth centre Working Paper Series, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre 1002, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre.

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