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Health Consequences of Easier Access to Alcohol: New Zealand Evidence

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Abstract

We evaluate the health effects of a reduction in New Zealand's minimum legal purchase age for alcohol. Difference-in-differences (DD) estimates show a substantial increase in alcohol-related hospitalizations among those newly eligible to purchase liquor, around 24.6% (s.e.=5.5%) for males and 22% (s.e.=8.1%) for females. There is less evidence of an effect among ineligible younger cohorts. There is little evidence of alcohol either complementing or substituting for drugs. We do not find evidence that earlier access to alcohol is associated with learning from experience. We also present regression discontinuity estimates, but emphasize DD estimates since in a simulation of a rational addiction model DD estimates are closer than regression discontinuity estimates to the policy's true effect.

Suggested Citation

  • Scrimgeour, Dean & Conover, Emily, 2012. "Health Consequences of Easier Access to Alcohol: New Zealand Evidence," Working Papers 2012-04, Department of Economics, Colgate University, revised 20 Dec 2012.
  • Handle: RePEc:cgt:wpaper:2012-04
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    File URL: http://commons.colgate.edu/cgi/viewcontent.cgi?article=1035&context=econ_facschol
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    Cited by:

    1. Jason M. Lindo & Peter Siminski & Oleg Yerokhin, 2016. "Breaking The Link Between Legal Access To Alcohol And Motor Vehicle Accidents: Evidence From New South Wales," Health Economics, John Wiley & Sons, Ltd., vol. 25(7), pages 908-928, July.
    2. 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.
    3. Marcos Yamada Nakaguma & Brandon Restrepo, 2014. "Unintended Benefits of Election Day Alcohol Bans: Evidence from Road Crashes and Hospitalizations in Brazil," Working Papers, Department of Economics 2014_21, University of São Paulo (FEA-USP).
    4. Boes, Stefan & Stillman, Steven, 2013. "Does Changing the Legal Drinking Age Influence Youth Behaviour?," IZA Discussion Papers 7522, Institute for the Study of Labor (IZA).
    5. Christopher S. Carpenter & Carlos Dobkin & Casey Warman, 2016. "The Mechanisms of Alcohol Control," Journal of Human Resources, University of Wisconsin Press, vol. 51(2), pages 328-356.
    6. Boes, Stefan & Stillman, Steven, 2017. "You Drink, You Drive, You Die? The Dynamics of Youth Risk Taking in Response to a Change in the Legal Drinking Age," IZA Discussion Papers 10543, Institute for the Study of Labor (IZA).
    7. Anderson, D. Mark & Crost, Benjamin & Rees, Daniel I., 2014. "Wet Laws, Drinking Establishments, and Violent Crime," IZA Discussion Papers 8718, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    alcohol; minimum purchase age; youth; health; hospitalizations; New Zealand;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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