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Malleability of Alcohol Consumption: Evidence from Migrants

Author

Listed:
  • Marit Hinnosaar
  • Elaine M. Liu

Abstract

How malleable is alcohol consumption? Specifically, how much is alcohol consumption driven by the current environment versus individual characteristics? To answer this question, we analyze changes in alcohol purchases when consumers move from one state to another in the United States. We find that if a household moves to a state with a higher (lower) average alcohol purchases than the origin state, the household is likely to increase (decrease) its alcohol purchases right after the move. The current environment explains about two-thirds of the differences in alcohol purchases. The adjustment takes place both on the extensive and intensive margins.

Suggested Citation

  • Marit Hinnosaar & Elaine M. Liu, 2022. "Malleability of Alcohol Consumption: Evidence from Migrants," NBER Working Papers 30245, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30245
    Note: EH IO PE
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    Cited by:

    1. Marit Hinnosaar, 2023. "The Persistence of Healthy Behaviors in Food Purchasing," Marketing Science, INFORMS, vol. 42(3), pages 521-537, May.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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