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The Cost of Binge Drinking

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Listed:
  • Marco Francesconi
  • Jonathan James

Abstract

We estimate the effect of binge drinking on accident and emergency attendances, road accidents, arrests, and the number of police officers on duty using a variety of unique data from Britain and a two-sample minimum distance estimation procedure. Our estimates, which reveal sizeable effects of bingeing on all outcomes, are then used to monetize the short-term externalities of binge drinking. We find that these externalities are on average $4.9 billion per year ($7 billion), about $80 for each man, woman, and child living in the UK. The price that internalizes this externality is equivalent to an additional 9p per alcoholic unit, implying a 20% increase with respect to the current average price.

Suggested Citation

  • Marco Francesconi & Jonathan James, 2015. "The Cost of Binge Drinking," CESifo Working Paper Series 5214, CESifo.
    • Handle: RePEc:ces:ceswps:_5214
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    References listed on IDEAS

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    Cited by:

    1. CLIFTON-SPRINGG, Joanna & JAMES, Jonathan & VUJIC, Suncica, 2017. "FOI as a data collection tool for economists," Working Papers 2017008, University of Antwerp, Faculty of Business and Economics.

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    More about this item

    Keywords

    alcohol; health; road accidents; arrests; externalities;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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