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Using Nlsy-Geocode Data To Determine The Effects Of Taxes And Minimum Age Laws On The Alcoholic Beverage Demand Of Young Adults

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  • Mark Paul Gius

Abstract

In the present study, OLS and logit regression analysis are used to determine the effect that minimum age laws and taxes have on alcohol consumption and binge drinking. NLSY-Geocode data are used in order to construct individual-level demand equations. The use of this data allows for the identification of the individual's state of residence and thus enables the researcher to properly match the individual to the appropriate state alcohol tax rate. Results indicate that taxes have a negative effect on alcohol consumption but no effect on binge drinking. Minimum age laws, however, are effective in reducing both the total quantity of alcohol consumed and binge drinking.

Suggested Citation

  • Mark Paul Gius, 2003. "Using Nlsy-Geocode Data To Determine The Effects Of Taxes And Minimum Age Laws On The Alcoholic Beverage Demand Of Young Adults," New York Economic Review, New York State Economics Association (NYSEA), vol. 34(1), pages 38-50.
  • Handle: RePEc:nye:nyervw:v:34:y:2003:i:1:p:38-50
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    File URL: http://www.nyecon.net/nysea/publications/nyer/2003/NYER_2003_p038.pdf
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    File URL: http://www.nyecon.net/nysea/publications/nyer/2003/NYER_2003_p038.html
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    References listed on IDEAS

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    1. Uri, Noel D, 1986. "The Demand for Beverages and Interbeverage Substitution in the United States," Bulletin of Economic Research, Wiley Blackwell, vol. 38(1), pages 77-85, January.
    2. Pacula, Rosalie Liccardo, 1998. "Does increasing the beer tax reduce marijuana consumption?," Journal of Health Economics, Elsevier, vol. 17(5), pages 557-585, October.
    3. Coate, Douglas & Grossman, Michael, 1988. "Effects of Alcoholic Beverage Prices and Legal Drinking Ages on Youth Alcohol Use," Journal of Law and Economics, University of Chicago Press, vol. 31(1), pages 145-171, April.
    4. Brent D. Mast & Bruce L. Benson & David W. Rasmussen, 1999. "Beer Taxation and Alcohol-Related Traffic Fatalities," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 214-249, October.
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    Cited by:

    1. Jon Nelson, 2015. "Binge drinking and alcohol prices: a systematic review of age-related results from econometric studies, natural experiments and field studies," Health Economics Review, Springer, vol. 5(1), pages 1-13, December.

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