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Alcohol Advertising Bans and Alcohol Abuse: An International Perspective

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  • Henry Saffer

Abstract

The purpose of this paper is to empirically examine the effect on alcohol abuse of banning broadcast advertising of alcoholic beverages. The effect of a ban cannot be studied using data from one country because the adoption of new advertising bans is an infrequent event and requires many years for adjustment. However, an international data set can be used since there is considerable variation in the use of advertising bans across countries. The data used in this study are a pooled time series from 17 countries for the period 1970 to 1983. The empirical measures of alcohol abuse are alcohol consumption, liver cirrhosis mortality rates, and highway fatality rates. The cultural factors which influence alcohol use are measured by sets of country dummy variables. The empirical results show that countries with bans on spirits advertising have about 10 percent lower alcohol consumption and motor vehicle fatality rates than countries with no bans. The results also show that countries with bans on beer and wine advertising have about 23 percent lower alcohol consumption and motor vehicle fatality rates than countries with only bans on spirits advertising.

Suggested Citation

  • Henry Saffer, 1989. "Alcohol Advertising Bans and Alcohol Abuse: An International Perspective," NBER Working Papers 3052, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:3052
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    1. Ornstein, Stanley I & Hanssens, Dominique M, 1985. " Alcohol Control Laws and the Consumption of Distilled Spirits and Beer," Journal of Consumer Research, Oxford University Press, vol. 12(2), pages 200-213, September.
    2. Walsh, Brendan M, 1982. "The Demand for Alcohol in the UK: A Comment," Journal of Industrial Economics, Wiley Blackwell, vol. 30(4), pages 439-446, June.
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    Cited by:

    1. Nuria Badenes-Plá & Andrew M. Jones, 2003. "Addictive goods and taxes: A survey from an economic perspective," Hacienda Pública Española, IEF, vol. 167(4), pages 123-153, December.
    2. Henry Saffer, 2000. "Alcohol Advertising And Motor Vehicle Fatalities," The Review of Economics and Statistics, MIT Press, vol. 79(3), pages 431-442, August.
    3. 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.
    4. Gannon, Brenda & Layte, Richard & McGregor, Pat & Madden, David & Nolan, Anne & O'Neill, Ciaran & Smith, Samantha, 2007. "The Provision and Use of Health Services, Health Inequalities and Health and Social Gain," Research Series, Economic and Social Research Institute (ESRI), number BMI196 edited by Nolan, Brian.
    5. Michael Grossman & Sara Markowitz, 1999. "Alcohol Regulation and Violence on College Campuses," NBER Working Papers 7129, National Bureau of Economic Research, Inc.
    6. Sara Markowitz, 2000. "Criminal Violence and Alcohol Beverage Control: Evidence from an International Study," NBER Working Papers 7481, National Bureau of Economic Research, Inc.
    7. Henry Saffer & Dhaval Dave, 2006. "Alcohol advertising and alcohol consumption by adolescents," Health Economics, John Wiley & Sons, Ltd., vol. 15(6), pages 617-637.
    8. David (David Patrick) Madden, 2007. "Health interventions and risky behaviour," Open Access publications 10197/791, School of Economics, University College Dublin.
    9. David (David Patrick) Madden, 2007. "Health interventions and risky behaviour," Working Papers 200709, School of Economics, University College Dublin.
    10. Seldon, Barry J. & Jewell, R. Todd & O'Brien, Daniel M., 2000. "Media substitution and economies of scale in advertising," International Journal of Industrial Organization, Elsevier, vol. 18(8), pages 1153-1180, December.
    11. Anderson, D. Mark, 2010. "Does information matter? The effect of the Meth Project on meth use among youths," Journal of Health Economics, Elsevier, vol. 29(5), pages 732-742, September.
    12. Michael Grossman, 2004. "Individual Behaviors and Substance Use: The Role of Price," NBER Working Papers 10948, National Bureau of Economic Research, Inc.
    13. Kinnucan, Henry W. & Myrland, Oystein, 2002. "Relationship Between Partial and Total Responses to Advertising with Application to U.S. Meats," Research Bulletins 122634, Cornell University, Department of Applied Economics and Management.
    14. Frank, Mark W., 2008. "Media substitution in advertising: A spirited case study," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 308-326, January.
    15. Gsottbauer, Elisabeth & van den Bergh, Jeroen C.J.M., 2014. "Environmental policy when pollutive consumption is sensitive to advertising: Norms versus status," Ecological Economics, Elsevier, vol. 107(C), pages 39-50.
    16. Nelson, Jon P. & Young, Douglas J., 2001. "Do Advertising Bans Work? An International Comparison," Working Papers 6-01-1, Pennsylvania State University, Department of Economics.
    17. Tetsuji Yamada & Michael Kendix & Tadashi Yamada, 1993. "The Impact of Alcohol Consumption and Marijuana Use on High School Graduation," NBER Working Papers 4497, National Bureau of Economic Research, Inc.
    18. Nelson, Jon P., 2001. "Alcohol Advertising and Advertising Bans: A Survey of Research Methods, Results, and Policy Implications," Working Papers 7-01-2, Pennsylvania State University, Department of Economics.
    19. Frank J. Chaloupka & Michael Grossman & Warren K. Bickel & Henry Saffer, 1999. "Introduction to "The Economic Analysis of Substance Use and Abuse: An Integration of Econometrics and Behavioral Economic Research"," NBER Chapters,in: The Economic Analysis of Substance Use and Abuse: An Integration of Econometrics and Behavioral Economic Research, pages 1-14 National Bureau of Economic Research, Inc.

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