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Alcohol Prices, Consumption, and Traffic Fatalities

Author

Listed:
  • Douglas J. Young

    () (Montana State University)

  • Agnieszka Bielinska-Kwapisz

    (Montana State University)

Abstract

We examine the relationships among alcohol prices, consumption, and traffic fatalities using data across U.S. states from 1982 to 2000. Some previous studies have found large, negative associations between alcohol taxes and fatalities. However, commonly used price data suggest little or no connection between alcohol prices and fatalities. These apparently conflicting findings may result from measurement error and/or endogeneity in the price data, which biases ordinary least squares estimators toward a finding of no price effects. Using alcohol taxes as instrumental variables, fatalities are found to be negatively related to prices. In addition, alcohol consumption is strongly positively related to fatalities. However, biases may still remain, because taxes are not entirely suitable as instruments.

Suggested Citation

  • Douglas J. Young & Agnieszka Bielinska-Kwapisz, 2006. "Alcohol Prices, Consumption, and Traffic Fatalities," Southern Economic Journal, Southern Economic Association, vol. 72(3), pages 690-703, January.
  • Handle: RePEc:sej:ancoec:v:72:3:y:2006:p:690-703
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    Citations

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    Cited by:

    1. Benjamin Cooper & Markus Gehrsitz & Stuart McIntyre, 2018. "Drink, death and driving: do BAC limit reductions improve road safety?," Working Papers 1812, University of Strathclyde Business School, Department of Economics.
    2. French, Michael T. & Gumus, Gulcin & Homer, Jenny F., 2009. "Public policies and motorcycle safety," Journal of Health Economics, Elsevier, vol. 28(4), pages 831-838, July.
    3. Marcus, Jan & Siedler, Thomas, 2015. "Reducing binge drinking? The effect of a ban on late-night off-premise alcohol sales on alcohol-related hospital stays in Germany," Journal of Public Economics, Elsevier, vol. 123(C), pages 55-77.
    4. D. Mark Anderson & Benjamin Hansen & Daniel I. Rees, 2013. "Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption," Journal of Law and Economics, University of Chicago Press, vol. 56(2), pages 333-369.
    5. Anderson, D. Mark & Rees, Daniel I., 2015. "Per se drugged driving laws and traffic fatalities," International Review of Law and Economics, Elsevier, vol. 42(C), pages 122-134.
    6. Cotti Chad & Tefft Nathan, 2011. "Decomposing the Relationship between Macroeconomic Conditions and Fatal Car Crashes during the Great Recession: Alcohol- and Non-Alcohol-Related Accidents," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-24, August.
    7. Darren Grant, 2011. "Politics, Policy Analysis, and the Passage of the National Minimum Drinking Age Act of 1984," Working Papers 1103, Sam Houston State University, Department of Economics and International Business.
    8. Wright, Nicholas Anthony & Lee, La-troy, 2017. "New Evidence on the Casual Effect of Traffic safety Laws on Drunk Driving and Traffic Fatalities," MPRA Paper 82730, University Library of Munich, Germany.
    9. Per G. Fredriksson & Stephan Gohmann & Khawaja Mamun, 2009. "Taxing Under the Influence?," Public Finance Review, , vol. 37(3), pages 339-365, May.
    10. Carbonnier, Clément, 2014. "The incidence of non-linear price-dependent consumption taxes," Journal of Public Economics, Elsevier, vol. 118(C), pages 111-119.
    11. Chung Jinhwa & Joo Hailey Hayeon & Moon Seongman, 2014. "Designated Driver Service Availability and Its Effects on Drunk Driving Behaviors," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(4), pages 1-25, October.
    12. Zimmerman, Paul R. & Benson, Bruce L., 2007. "Alcohol and rape: An "economics-of-crime" perspective," International Review of Law and Economics, Elsevier, vol. 27(4), pages 442-473, December.
    13. Resul Cesur & Alexander Chesney & Joseph J. Sabia, 2016. "Combat Exposure, Cigarette Consumption, And Substance Use," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1705-1726, July.
    14. Grant, Darren, 2016. "A structural analysis of U.S. drunk driving policy," International Review of Law and Economics, Elsevier, vol. 45(C), pages 14-22.

    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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