IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/11138.html
   My bibliography  Save this paper

Are Alcohol Excise Taxes Good For Us? Short and Long-Term Effects on Mortality Rates

Author

Listed:
  • Philip J. Cook
  • Jan Ostermann
  • Frank A. Sloan

Abstract

Regression results from a 30-year panel of the state-level data indicate that changes in alcohol-excise taxes cause a reduction in drinking and lower all-cause mortality in the short run. But those results do not fully capture the long-term mortality effects of a permanent change in drinking levels. In particular, since moderate drinking has a protective effect against heart disease in middle age, it is possible that a reduction in per capita drinking will result in some people drinking "too little" and dying sooner than they otherwise would. To explore that possibility, we simulate the effect of a one percent reduction in drinking on all-cause mortality for the age group 35-69, using several alternative assumptions about how the reduction is distributed across this population. We find that the long-term mortality effect of a one percent reduction in drinking is essentially nil.

Suggested Citation

  • Philip J. Cook & Jan Ostermann & Frank A. Sloan, 2005. "Are Alcohol Excise Taxes Good For Us? Short and Long-Term Effects on Mortality Rates," NBER Working Papers 11138, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:11138
    Note: HC
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w11138.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philip J. Cook & George Tauchen, 1982. "The Effect of Liquor Taxes on Heavy Drinking," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 379-390, Autumn.
    2. Frank A. Sloan & Justin G. Trogdon, 2004. "Litigation and the Political Clout of the Tobacco Companies: Cigarette Taxes, Prices, and the Master Settlement Agreement," School of Economics Working Papers 2004-04, University of Adelaide, School of Economics.
    3. Christopher Carpenter, 2004. "Heavy alcohol use and youth suicide: Evidence from tougher drunk driving laws," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(4), pages 831-842.
    4. Kenneth Clements & Wana Yang & Simon Zheng, 1997. "Is utility additive? The case of alcohol," Applied Economics, Taylor & Francis Journals, vol. 29(9), pages 1163-1167.
    5. Philip J. Cook & Michael J. Moore, 2001. "Environment and Persistence in Youthful Drinking Patterns," NBER Chapters, in: Risky Behavior among Youths: An Economic Analysis, pages 375-438, National Bureau of Economic Research, Inc.
    6. Single, E. & Robson, L. & Rehm, J. & Xi, X., 1999. "Morbidity and mortality attributable to alcohol, tobacco, and illicit drug use in Canada," American Journal of Public Health, American Public Health Association, vol. 89(3), pages 385-390.
    7. Ruhm, Christopher J., 1995. "Economic conditions and alcohol problems," Journal of Health Economics, Elsevier, vol. 14(5), pages 583-603, December.
    8. Chaloupka, Frank J & Saffer, Henry & Grossman, Michael, 1993. "Alcohol-Control Policies and Motor-Vehicle Fatalities," The Journal of Legal Studies, University of Chicago Press, vol. 22(1), pages 161-186, January.
    9. Cook, Philip J., 1988. "Increasing the federal excise taxes on alcoholic beverages," Journal of Health Economics, Elsevier, vol. 7(1), pages 89-91, March.
    10. Daniel Eisenberg, 2003. "Evaluating the effectiveness of policies related to drunk driving," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(2), pages 249-274.
    11. Henry Saffer & Michael Grossman, 1986. "Beer Taxes, the Legal Drinking Age, and Youth Motor Vehicle Fatalities," NBER Working Papers 1914, National Bureau of Economic Research, Inc.
    12. Saffer, Henry & Grossman, Michael, 1987. "Drinking Age Laws and Highway Mortality Rates: Cause and Effect," Economic Inquiry, Western Economic Association International, vol. 25(3), pages 403-417, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and Taxation: Theory and Evidence," American Economic Review, American Economic Association, vol. 99(4), pages 1145-1177, September.
    2. Philip J. Cook & Jan Ostermann & Frank A. Sloan, 2005. "The Net Effect of an Alcohol Tax Increase on Death Rates in Middle Age," American Economic Review, American Economic Association, vol. 95(2), pages 278-281, May.
    3. Durrance, Christine Piette & Golden, Shelley & Perreira, Krista & Cook, Philip, 2011. "Taxing sin and saving lives: Can alcohol taxation reduce female homicides?," Social Science & Medicine, Elsevier, vol. 73(1), pages 169-176, July.
    4. Sara Markowitz & Alison Evans Cuellar & Ryan M. Conrad & Michael Grossman, 2011. "The Effects of Alcohol Policies in Reducing Entry Rates and Time Spent in Foster Care," NBER Working Papers 16915, National Bureau of Economic Research, Inc.
    5. Todd M. Nesbit, 2005. "The Revenue Impacts of Cross-border Sales and Tourism: Wine and Liquor Taxation," Working Papers 05-12 Classification-, Department of Economics, West Virginia University.
    6. Jason Fletcher, 2012. "Peer influences on adolescent alcohol consumption: evidence using an instrumental variables/fixed effect approach," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1265-1286, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cook, Philip J. & Moore, Michael J., 2000. "Alcohol," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 30, pages 1629-1673, Elsevier.
    2. Ruhm, Christopher J., 1996. "Alcohol policies and highway vehicle fatalities," Journal of Health Economics, Elsevier, vol. 15(4), pages 435-454, August.
    3. Jeffrey Linkenbach & Douglas J. Young, 2012. "Accounting for Changes in Alcohol Use and Abuse in the United States," SAGE Open, , vol. 2(3), pages 21582440124, September.
    4. Philip J. Cook & Jan Ostermann & Frank A. Sloan, 2005. "The Net Effect of an Alcohol Tax Increase on Death Rates in Middle Age," American Economic Review, American Economic Association, vol. 95(2), pages 278-281, May.
    5. Bruce L. Benson, 2007. "Private Policing And Private Roads: A Coasian Approach To Drunk‚ÄźDriving Policy," Economic Affairs, Wiley Blackwell, vol. 27(4), pages 30-38, December.
    6. Parry, Ian W.H. & Laxminarayan, Ramanan & West, Sarah E., 2006. "Fiscal and Externality Rationales for Alcohol Taxes," Discussion Papers dp-06-51, Resources For the Future.
    7. Michael Morrisey & David Grabowski, 2011. "Gas prices, beer taxes and GDL programmes: effects on auto fatalities among young adults in the US," Applied Economics, Taylor & Francis Journals, vol. 43(25), pages 3645-3654.
    8. Daniel Albalate, 2008. "Lowering blood alcohol content levels to save lives: The European experience," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(1), pages 20-39.
    9. Benson, Bruce L. & Rasmussen, David W. & Mast, Brent D., 1999. "Deterring drunk driving fatalities: an economics of crime perspective1," International Review of Law and Economics, Elsevier, vol. 19(2), pages 205-225, June.
    10. Michael Grossman & Sara Markowitz, 1999. "Alcohol Regulation and Violence on College Campuses," NBER Working Papers 7129, National Bureau of Economic Research, Inc.
    11. Darren Grant, 2011. "Politics, Policy Analysis, and the Passage of the National Minimum Drinking Age Act of 1984," Working Papers 1103, Sam Houston State University, Department of Economics and International Business.
    12. Michael Grossman, 1993. "Policy Watch: Alcohol and Cigarette Taxes," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 211-222, Fall.
    13. Baughman, Reagan & Conlin, Michael & Dickert-Conlin, Stacy & Pepper, John, 2001. "Slippery when wet: the effects of local alcohol access laws on highway safety," Journal of Health Economics, Elsevier, vol. 20(6), pages 1089-1096, November.
    14. Christopher Carpenter & Carlos Dobkin, 2009. "The Effect of Alcohol Consumption on Mortality: Regression Discontinuity Evidence from the Minimum Drinking Age," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 164-182, January.
    15. David Roodman, 2020. "The impacts of alcohol taxes: A replication review," Papers 2007.10270, arXiv.org.
    16. Farrell, Susan & Manning, Willard G. & Finch, Michael D., 2003. "Alcohol dependence and the price of alcoholic beverages," Journal of Health Economics, Elsevier, vol. 22(1), pages 117-147, January.
    17. Steven D. Levitt & Jack Porter, 1999. "Estimating the Effect of Alcohol on Driver Risk Using Only Fatal Accident Statistics," NBER Working Papers 6944, National Bureau of Economic Research, Inc.
    18. Cooper, James C. & Wright, Joshua D., 2012. "Alcohol, antitrust, and the 21st Amendment: An empirical examination of post and hold laws," International Review of Law and Economics, Elsevier, vol. 32(4), pages 379-392.
    19. Wright, Nicholas Anthony & Lee, La-troy, 2017. "New Evidence on the Casual Effect of Traffic safety Laws on Drunk Driving and Traffic Fatalities," MPRA Paper 82730, University Library of Munich, Germany.
    20. Sara Markowitz & Michael Grossman, 1999. "Alcohol Regulation and Violence Towards Children," NBER Working Papers 6359, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:11138. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.