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Alcohol advertising bans, consumption and control policies in seventeen OECD countries, 1975-2000

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  • Jon Nelson

Abstract

This article uses cross-country panel data to study the effects of advertising bans and other control policies on alcohol demand. The null hypothesis is that advertising bans do not decrease alcohol consumption. The study addresses several shortcomings in four previous cross-country studies. First, an explanatory variable is included for other alcohol control policies. Second, the study examines the history of advertising bans in OECD countries. Third, the study also examines differences in cross-country trends that characterize developed countries, including aging of the population, increased tourism, higher unemployment rates and increased consumption of wine. The Mediterranean wine-drinking countries are shown to be categorically distinct from the beer-drinking countries and Nordic spirits-drinking countries. Fourth, the study examines the panel data for unit roots and employs model specifications that correct for nonstationary data. The empirical results indicate a significantly negative effect for the control index and the alcohol price. Using alternative model specifications and estimation methods, the results indicate that advertising bans do not reduce alcohol consumption.

Suggested Citation

  • Jon Nelson, 2010. "Alcohol advertising bans, consumption and control policies in seventeen OECD countries, 1975-2000," Applied Economics, Taylor & Francis Journals, vol. 42(7), pages 803-823.
  • Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:803-823
    DOI: 10.1080/00036840701720952
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    References listed on IDEAS

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    1. Joshua Aizenman & Eileen Brooks, 2008. "Globalization and Taste Convergence: the Cases of Wine and Beer," Review of International Economics, Wiley Blackwell, vol. 16(2), pages 217-233, May.
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    Cited by:

    1. Lukasz Wozny & Michal Krawczyk, 2016. "An experiment on temptation and attitude towards paternalism," Working Papers 2016-018, Warsaw School of Economics, Collegium of Economic Analysis.
    2. repec:exl:22evid:v:2013:y:2013:i:2:p:1-37 is not listed on IDEAS
    3. Benjamin Volland, 2013. "The History of an Inferior Good: Beer Consumption in Germany," Papers on Economics and Evolution 2012-19, Philipps University Marburg, Department of Geography.

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