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USSR babies: who drinks vodka in Russia?

  • Evgeny Yakovlev

    ()

    (New Economic School and CEFIR)

By analyzing individual-level data on the alcohol consumption of Russian males, this paper finds evidence for a longstanding persistence of habits towards certain type of habit-forming goods. Males who grew up in the USSR are accustomed to vodka – the most popular liquor during the Soviet era – whereas those who entered their twenties in the post-Soviet period after the beer industry expanded prefer beer. This finding emphasizes the importance of policy towards young people when they form their habits. The second finding of this paper is that habits and substitution effects outweigh “stepping stone” effect, in both short and long run periods. Policy simulation shows that a 50% subsidy on beer and 30% tax on vodka will decrease male mortality from 1.41% to 0.95% in 10 years, halving the gap between Russian and western-European mortality rates.

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Paper provided by Center for Economic and Financial Research (CEFIR) in its series Working Papers with number w0183.

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Length: 41 pages
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:cfr:cefirw:w0183
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  1. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, May.
  2. van Ours, Jan C, 2001. "Is Cannabis a Stepping-Stone for Cocaine?," CEPR Discussion Papers 3116, C.E.P.R. Discussion Papers.
  3. van Ours, J.C., 2003. "Is cannabis a stepping stone for cocaine?," Other publications TiSEM c1213d1c-a542-4627-938c-7, Tilburg University, School of Economics and Management.
  4. Yuri Andrienko & Sergei Guriev, 2004. "Determinants of interregional mobility in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(1), pages 1-27, 03.
  5. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2005. "Trusting the Stock Market," NBER Working Papers 11648, National Bureau of Economic Research, Inc.
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