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The effect of economic conditions on alcohol consumption

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  • Jakub Čihák

    (University of Economics in Prague)

Abstract

This study investigates a previously unexplored relationship between unemployment and alcohol-related liver cirrhosis in the Czech Republic. Models were estimated in several specifications using fixed effects on panel data for all regions in the Czech Republic between 1994 and 2016. The focus is on whether alcohol consumption is pro-cyclical or counter-cyclical. Unlike studies using US data, in which alcohol consumption appears to be pro-cyclical, this study shows that economic downturns result in increased alcohol consumption and, therefore, signals a counter-cyclical relationship. Moreover, the study finds that divorce increases alcohol consumption, while increases in the real price of alcohol decrease consumption.

Suggested Citation

  • Jakub Čihák, 2020. "The effect of economic conditions on alcohol consumption," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(4), pages 481-497, December.
    • Handle: RePEc:spr:inrvec:v:67:y:2020:i:4:d:10.1007_s12232-020-00351-z
    DOI: 10.1007/s12232-020-00351-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Business cycles; Liver cirrhosis; Alcohol consumption; Unemployment;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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