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The passive drinking effect: Evidence from Italy

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Author Info
Martina Menon
Federico Perali
Luca Piccoli

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Abstract

This paper investigates whether consumption of alcoholic beverages affects distribution of resources among household members. We refer to this effect, highlighting the negative impact that alcohol addicted individuals can have on other household members wellbeing. To investigate this issue we rely on the collective framework and estimate a structural collective demand system. Our results show that for Italian households a high level of alcohol consumption influences the allocation of resources in favour of the husband, with a larger effect in poor households. This evidence implies that alcohol consumption is not only an individual problem. Public costs that are transferred to the other household members should be taken into account when designing social policies.

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Paper provided by PSE (Ecole normale supérieure) in its series PSE Working Papers with number 2008-33.

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Date of creation: 2008
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Handle: RePEc:pse:psecon:2008-33

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