A Theory of Chronic Loss, Suffering and Alcoholism
AbstractThis paper focuses on the consumption of alcohol to numb the suffering associated with failure. While drinking reduces the individual’s current level of suffering, it leads to future failures and potentially greater suffering. The basic model shows that the stationary status of an alcoholic is improved by the difference between his rate of time preference and the rate of return on his status and that this improvement is amplified by the ratio of the instantaneous suffering-relief effect to the status-eroding effect of alcohol. The extended model shows that society’s reaction to alcoholism may lead to permanent cyclical alcohol consumption.
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Bibliographic InfoPaper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp02-16.
Length: 23 pages
Date of creation: 2002
Date of revision:
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Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
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More information through EDIRC
alcoholism; suffering; alcohol consumption;
Find related papers by JEL classification:
- D99 - Microeconomics - - Intertemporal Choice - - - Other
- Z00 - Other Special Topics - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-HEA-2002-10-18 (Health Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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University of Chicago - George G. Stigler Center for Study of Economy and State
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